0000891293-20-000058 | 10-Q | XBRL Viewer

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2020	Nov. 03, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	000-28386
Entity Registrant Name	CTI BIOPHARMA CORP.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	91-1533912
Entity Address, Address Line One	3101 Western Avenue
Entity Address, Address Line Two	Suite 800
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98121
City Area Code	206
Local Phone Number	282-7100
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	CTIC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		73,751,756
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000891293
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 45,301	$ 31,144
Short-term investments	12,111	2,522
Prepaid expenses and other current assets	1,276	1,914
Total current assets	58,688	35,580
Property and equipment, net	835	1,235
Other assets	3,568	9,465
Total assets	63,091	46,280
Current liabilities:
Accounts payable	191	0
Accrued expenses	4,994	11,606
Current portion of long-term debt	5,658	4,812
Other current liabilities	3,676	2,070
Total current liabilities	14,519	18,488
Long-term debt, less current portion	0	4,455
Other liabilities	1,753	5,407
Total liabilities	16,272	28,350
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value per share:	74	58
Additional paid-in capital	2,359,747	2,299,186
Accumulated other comprehensive income	3	0
Accumulated deficit	(2,313,005)	(2,275,556)
Total CTI stockholders' equity	46,819	23,688
Noncontrolling interest	0	(5,758)
Total stockholders' equity	46,819	17,930
Total liabilities and stockholders' equity	63,091	46,280
Series O Preferred Stock
Stockholders' equity:
Preferred stock, $0.001 par value per share:	0	0
Series X Preferred Stock
Stockholders' equity:
Preferred stock, $0.001 par value per share:	$ 0	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
License and contract revenues	$ 0	$ 2,289	$ 0	$ 3,345
Operating costs and expenses:
Research and development	6,994	7,598	16,457	19,126
General and administrative	4,052	4,403	12,316	14,662
Restructuring expenses	0	0	0	794
Other operating expenses	0	0	4,200	0
Total operating costs and expenses	11,046	12,001	32,973	34,582
Loss from operations	(11,046)	(9,712)	(32,973)	(31,237)
Non-operating income (expense):
Interest income	25	276	187	1,003
Interest expense	(115)	(240)	(419)	(803)
Amortization of debt discount and issuance costs	(131)	(131)	(391)	(391)
Foreign exchange gain (loss)	4	(240)	(79)	(409)
Loss on dissolution of majority-owned subsidiary	0	0	(3,774)	0
Total non-operating expense, net	(217)	(335)	(4,476)	(600)
Net loss before noncontrolling interest	(11,263)	(10,047)	(37,449)	(31,837)
Noncontrolling interest	0	0	0	5
Net loss	$ (11,263)	$ (10,047)	$ (37,449)	$ (31,832)
Basic and diluted net loss per common share (in dollars per share)	$ (0.15)	$ (0.17)	$ (0.54)	$ (0.55)
Shares used in calculation of basic and diluted net loss per common share (in shares)	73,712	57,974	69,966	57,973

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss before noncontrolling interest	$ (11,263)	$ (10,047)	$ (37,449)	$ (31,837)
Other comprehensive income (loss):
Foreign currency translation adjustments	0	1,332	0	1,570
Unrealized foreign exchange loss on intercompany balance	0	(1,359)	0	(1,610)
Net unrealized gain (loss) on available-for-sale securities	3	(14)	3	20
Other comprehensive income (loss)	3	(41)	3	(20)
Comprehensive loss	(11,260)	(10,088)	(37,446)	(31,857)
Comprehensive loss attributable to noncontrolling interest	0	0	0	5
Comprehensive loss attributable to CTI	$ (11,260)	$ (10,088)	$ (37,446)	$ (31,852)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Preferred Stock	Common Stock	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling Interest
Beginning Balance (in shares) at Dec. 31, 2018			13	57,986
Beginning Balance at Dec. 31, 2018	$ 52,939	$ 1,196	$ 0	$ 58	$ 2,294,025	$ (7)	$ 1,350	$ (2,236,739)	$ 1,203	$ (5,755)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	1,257				1,257
Net loss	(10,814)							(10,814)
Equity-based compensation (in shares)				(7)
Other comprehensive income	9						9
Ending Balance (in shares) at Mar. 31, 2019			13	57,979
Ending Balance at Mar. 31, 2019	44,587		$ 0	$ 58	2,295,275		1,359	(2,246,350)		(5,755)
Beginning Balance (in shares) at Dec. 31, 2018			13	57,986
Beginning Balance at Dec. 31, 2018	52,939	$ 1,196	$ 0	$ 58	2,294,025	$ (7)	1,350	(2,236,739)	$ 1,203	(5,755)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(31,832)
Other comprehensive income	(20)
Ending Balance (in shares) at Sep. 30, 2019			13	57,979
Ending Balance at Sep. 30, 2019	26,191		$ 0	$ 58	2,297,931		1,330	(2,267,368)		(5,760)
Beginning Balance (in shares) at Mar. 31, 2019			13	57,979
Beginning Balance at Mar. 31, 2019	44,587		$ 0	$ 58	2,295,275		1,359	(2,246,350)		(5,755)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	1,361				1,361
Net loss	(10,971)							(10,971)
Other	1				1
Other comprehensive income	12						12
Noncontrolling interest	(5)									(5)
Ending Balance (in shares) at Jun. 30, 2019			13	57,979
Ending Balance at Jun. 30, 2019	34,985		$ 0	$ 58	2,296,637		1,371	(2,257,321)		(5,760)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	1,294				1,294
Net loss	(10,047)							(10,047)
Other comprehensive income	(41)						(41)
Ending Balance (in shares) at Sep. 30, 2019			13	57,979
Ending Balance at Sep. 30, 2019	26,191		$ 0	$ 58	2,297,931		1,330	(2,267,368)		(5,760)
Beginning Balance (in shares) at Dec. 31, 2019			13	57,980
Beginning Balance at Dec. 31, 2019	17,930		$ 0	$ 58	2,299,186		0	(2,275,556)		(5,758)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs (in shares)				15,699
Issuance of common stock, net of issuance costs	15,470			$ 16	15,454
Conversion of Series X preferred stock to common stock (in shares)				3
Conversion of Series X preferred stock to common stock	3				3
Equity-based compensation	1,167				1,167
Net loss	(12,186)							(12,186)
Ending Balance (in shares) at Mar. 31, 2020			13	73,682
Ending Balance at Mar. 31, 2020	22,384		$ 0	$ 74	2,315,810		0	(2,287,742)		(5,758)
Beginning Balance (in shares) at Dec. 31, 2019			13	57,980
Beginning Balance at Dec. 31, 2019	17,930		$ 0	$ 58	2,299,186		0	(2,275,556)		(5,758)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(37,449)
Other comprehensive income	3
Ending Balance (in shares) at Sep. 30, 2020			17	73,717
Ending Balance at Sep. 30, 2020	46,819		$ 0	$ 74	2,359,747		3	(2,313,005)		0
Beginning Balance (in shares) at Mar. 31, 2020			13	73,682
Beginning Balance at Mar. 31, 2020	22,384		$ 0	$ 74	2,315,810		0	(2,287,742)		(5,758)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	1,002				1,002
Net loss	(14,000)							(14,000)
Reclassification of Series X preferred stock from mezzanine equity (in shares)			4
Reclassification of Series X preferred stock from mezzanine equity	43,637				43,637
Dissolution of majority-owned subsidiary	3,809				(1,949)					5,758
Other (in shares)				35
Other	31				31
Ending Balance (in shares) at Jun. 30, 2020			17	73,717
Ending Balance at Jun. 30, 2020	56,863		$ 0	$ 74	2,358,531		0	(2,301,742)		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	1,216				1,216
Net loss	(11,263)							(11,263)
Other comprehensive income	3						3
Ending Balance (in shares) at Sep. 30, 2020			17	73,717
Ending Balance at Sep. 30, 2020	$ 46,819		$ 0	$ 74	$ 2,359,747		$ 3	$ (2,313,005)		$ 0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net loss before noncontrolling interest	$ (37,449)	$ (31,837)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on dissolution of majority-owned subsidiary	3,774	0
Equity-based compensation	3,385	3,911
Depreciation and amortization	399	412
Provision for Italian VAT receivables and deposit	4,200	0
Other	(122)	177
Changes in operating assets and liabilities:
Receivables from license and development services arrangements	0	13,534
Prepaid expenses and other assets	2,267	1,935
Accounts payable, accrued expenses and other liabilities	(7,839)	(4,468)
Net cash used in operating activities	(31,385)	(16,336)
Investing activities
Purchases of short-term investments	(12,100)	(8,507)
Proceeds from maturities of short-term investments	2,500	27,400
Net cash (used in) provided by investing activities	(9,600)	18,893
Financing activities
Proceeds from rights offering, net of issuance costs	59,108	0
Principal payments on debt	(4,000)	(4,000)
Proceeds from stock option exercises	30	0
Proceeds from sales of common stock under employee stock purchase plan	4	1
Cash paid for at-the-market equity offering costs	0	(45)
Net cash provided by (used in) financing activities	55,142	(4,044)
Effect of exchange rate changes on cash and cash equivalents	0	(35)
Net increase (decrease) in cash and cash equivalents	14,157	(1,522)
Cash and cash equivalents at beginning of period	31,144	36,439
Cash and cash equivalents at end of period	45,301	34,917
Supplemental disclosure of cash flow information
Cash paid during the period for interest	$ 448	$ 834

Description of Business and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Description of Business and Summary of Significant Accounting Policies

1. Description of Business and Summary of Significant Accounting Policies

CTI BioPharma Corp., together with its subsidiary, also referred to collectively in this Quarterly Report on Form 10-Q as “we,” “us,” “our,” the “Company” and “CTI,” is a biopharmaceutical company focused on the acquisition, development and commercialization of novel targeted therapies for blood-related cancers that offer a unique benefit to patients and their healthcare providers. Our goal is to build a profitable company by generating income from products we develop and commercialize, either alone or with partners. We concentrate our efforts on treatments that target blood-related cancers where there is an unmet medical need. In particular, we are focused on evaluating pacritinib, our sole product candidate currently in active development, for the treatment of adult patients with myelofibrosis. In addition, we have recently started developing pacritinib for use in hospitalized patients with severe COVID-19, in response to the COVID-19 pandemic.

We operate in a highly regulated and competitive environment. The manufacturing and marketing of pharmaceutical products requires approval from, and is subject to, ongoing oversight by the Food and Drug Administration, or the FDA, in the United States, the European Medicines Agency, or the EMA, in the European Union, or the EU, and comparable agencies in other countries. Obtaining approval for a new therapeutic product is never certain, may take many years and may involve the expenditure of substantial resources.

Basis of Presentation

The accompanying unaudited financial information as of and for the three and nine months ended September 30, 2020 and 2019 has been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, such financial information includes all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial position at such date and the operating results and cash flows for such periods. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules of the U.S. Securities and Exchange Commission, or the SEC. These unaudited financial statements and related notes should be read in conjunction with our audited financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K filed with the SEC on March 13, 2020.

The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements. As previously disclosed in our June 30, 2020 financial statements, we have adjusted for an immaterial error in prior periods by revising the historical financial statements presented herein by reducing accumulated other comprehensive loss and increasing accumulated deficit, each by $12.0 million, as of December 31, 2018. The correction did not have an impact on total assets, total stockholders’ equity, the condensed consolidated statements of operations, comprehensive loss, or cash flows.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of CTI and its wholly-owned subsidiary, CTI Life Sciences Limited, until its dissolution in November 2019, and our majority-owned subsidiary, Aequus Biopharma, Inc., or Aequus, until its dissolution in June 2020 as discussed in Note 5. Related Party Transactions. We had an approximately 60% interest in Aequus, and the remaining interest in Aequus not held by CTI was reported as noncontrolling interest in the condensed consolidated financial statements until its dissolution. All intercompany transactions and balances were eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles, or GAAP, requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of loss contingencies in the condensed consolidated financial statements and accompanying notes. Estimates are

used for, but not limited to, income taxes, useful lives of equipment, commitments and contingencies, equity-based compensation forfeiture rates, collectability of receivables, and impairment of investments. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates are becoming more challenging, and actual results could differ materially from those estimates.

Liquidity

The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business within one year after the date the condensed consolidated financial statements are issued. Our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued.

Over the next year and in the normal course of business, we will need to continue to conduct research, development, testing and regulatory compliance activities with respect to pacritinib and in the course of such activities, we will incur general and administrative expenses. Additional business activities will include procuring manufacturing and drug supply services, the costs of which, together with our projected general and administrative expenses, are expected to result in operating losses for the foreseeable future. We have incurred a net operating loss every year since our formation. As of September 30, 2020, we had an accumulated deficit of $2.3 billion, and we expect to continue to incur net losses for the foreseeable future. Our available cash, cash equivalents and short-term investments were $57.4 million as of September 30, 2020, and we expect that our present financial resources will only be sufficient to meet our obligations as they come due and to fund our operations into the fourth quarter of 2021. Based on our evaluation completed pursuant to Accounting Standards Update No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, these factors raise substantial doubt about our ability to continue as a going concern.

Accordingly, we will need to acquire additional funds in order to develop our business and continue the development of pacritinib. The amount of funds that we will ultimately require will depend, in part, upon: regulatory approval developments and the extent to which we are required to conduct additional clinical trials; competitive market developments which require us to alter our business practices; and other unplanned expenses or business developments. We may seek to raise such capital through public or private equity financings, partnerships, collaborations, joint ventures, disposition of assets, debt financings or restructurings, bank borrowings or other sources of financing. However, we have a limited number of authorized shares of common stock available for issuance and additional funding obtained through the sale of such shares or otherwise may not be sufficient, available on favorable terms or available at all. If additional funds are raised by issuing equity securities, substantial dilution to existing stockholders may result. If we fail to obtain additional capital when needed, our ability to operate as a going concern will be harmed, and we may be required to delay, scale back or eliminate some or all of our research and development programs, be required to reduce our general and administrative expenses, be unable to attract and retain highly-qualified personnel, be unable to obtain and maintain contracts necessary to continue our operations at affordable rates with competitive terms, have to refrain from making our contractually required payments when due (including debt payments) and/or may be forced to cease operations, liquidate our assets and possibly seek bankruptcy protection. The amount of financing we require is dependent upon many factors relating to drug approval status and our commercialization plans, as well as our clinical trials. These factors include the number of clinical trial sites in a given clinical trial, the number of patients treated in a given clinical trial, the pace of patient enrollment and other matters that may impact clinical development, including changes to a clinical trial that we may initiate or that may be requested by the FDA or other regulators. There can be no assurance as to the amount of funding necessary to fund the development of pacritinib to completion or that we will be able to obtain this funding. In addition, our ability to comply with covenants under the loan and security agreement with Silicon Valley Bank, or SVB, may be affected by events beyond our control, and we may not be able to meet those covenants. A breach of any of these covenants, including a material adverse change in our business, operations or condition (financial or otherwise) could result in an event of default under the loan and security agreement, which could cause all of the outstanding indebtedness under the facility to become immediately due and payable. See Long-term Debt below for further discussion. The accompanying condensed consolidated financial statements do not include adjustments, if any, that may result from the outcome of this uncertainty.

Cash, Cash Equivalents and Short-term Investments

As of September 30, 2020 and December 31, 2019, our cash, cash equivalents and short-term investments consisted of cash, money market funds, U.S. government and agency securities and corporate debt securities. Cash equivalents and short-term investments are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. There are three levels of inputs used to measure fair value, with Level 1 having the highest priority and Level 3 having the lowest:

•Level 1—Valuations based on unadjusted quoted prices for identical assets and liabilities in active markets.

•Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

•Level 3—Valuations based on unobservable inputs that are supported by little or no market activity, reflecting our own assumptions. These valuations require significant judgment or estimation.

We measure the fair value of money market funds based on the closing price reported by the fund sponsor from an actively traded exchange. We value all other securities using broker quotes that utilize observable market inputs. We did not hold cash, cash equivalents and short-term investments categorized as Level 3 assets as of September 30, 2020 and December 31, 2019. The following table summarizes, by major security type, our cash, cash equivalents and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):


	September 30, 2020								December 31, 2019
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value		Total Estimated Fair Value
Cash	$	309	$	—	$	—	$	309	$	188
Level 1 securities:
Money market funds	44,992		—		—		44,992		28,957

Level 2 securities:
U.S. government and agency securities	—		—		—		—		2,522
Corporate debt securities	12,108		3		—		12,111		1,999
Total cash, cash equivalents and short-term investments	$	57,409	$	3	$	—	$	57,412	$	33,666

Italian Value Added Tax Receivable

We historically carried out research and development activities in Italy and incurred value added tax, or VAT, from Italian suppliers on the acquisition of goods and services in Italy. This VAT should be considered as an input VAT credit. We treated the majority of our sales made in Italy without output VAT (on the basis that the supplies should be considered outside the scope of Italian VAT). This resulted in the value of input VAT exceeding the value of output VAT, and accordingly we submitted a refund claim for the VAT. The Italian Tax Authority, or the ITA, has challenged the treatment of the sales transactions and claimed that the sales transactions made by us should have been subject to output VAT. Our Italian VAT receivable was approximately €3.9 million as of September 30, 2020 and December 31, 2019. While we believe that our refund claim is valid, we concluded that the ongoing COVID-19 global pandemic negatively impacted the collectability of our Italian VAT receivables and deposit. Accordingly, we recorded a full provision against our Italian VAT receivables and deposit in the amount of $4.2 million, which is included in Other operating expenses for the nine months ended September 30, 2020.

In addition, as disclosed in Note 6. Contingencies, the ITA assessed us for additional VAT payments for services we provided in Italy, which we do not believe we owe. We have not recorded an amount in the financial statements for this contingent liability as we do not believe the potential payment of up to €4.3 million (or approximately $5.0 million converted using the currency exchange rate as of September 30, 2020), to the ITA is probable at this time.

Leases

Under ASC 842 - Leases, we determine if an arrangement is a lease at inception. We recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as operating or finance at lease commencement, which will affect the pattern and classification of expense recognition in our condensed consolidated statements of operations.

Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide a readily determinable implicit rate of return, we use our incremental borrowing rate to derive the present value of lease payments, which is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

An operating lease right-of-use asset is measured at the amount of the lease liability, adjusted for prepaid or accrued lease payments, lease incentives received, unamortized initial direct costs and the impairment of the right-of-use asset. A lease may include options to extend or terminate the lease. When it is reasonably certain that we will exercise such an option, it is considered in the lease term. Right-of-use assets are tested for impairment in the same manner as long-lived assets used in operations. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease term.

Lease expense for operating leases is recognized on a straight-line basis over the lease term as part of Research and development expenses and General and administrative expenses in our condensed consolidated statements of operations. Right-of-use assets are included in Other assets, and the current portion of lease liabilities and the non-current portion of lease liabilities are included in Other current liabilities and Other liabilities, respectively, in our condensed consolidated balance sheets.

Long-term Debt

All amounts due under the loan and security agreement with SVB have been classified as current liabilities as of September 30, 2020 due to the considerations discussed in Liquidity above and the assessment that the material adverse change clause under the loan and security agreement is not within our control. We have not been notified of an event of default by SVB as of the date of the filing of this Quarterly Report on Form 10-Q.

Equity-based Compensation

Equity-based compensation expense is recognized over the requisite service periods on awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For performance-based stock options and restricted stock, we record compensation expense over the estimated service period once the achievement of the performance-based milestone is considered probable. We recorded equity-based compensation expense of $1.2 million and $1.3 million for the three months ended September 30, 2020 and 2019, respectively, and $3.4 million and $3.9 million for the nine months ended September 30, 2020 and 2019, respectively. Substantially all equity-based compensation expense was related to option awards and was included in General and administrative expenses for the periods presented.

Net Loss per Share

Basic net loss per common share is calculated based on the net loss attributable to common stockholders divided by the weighted average number of shares outstanding for the period. The calculation of diluted net loss per common share excludes the potential conversion of all dilutive convertible securities, such as convertible preferred stock, using the if-converted method, and the potential exercise or vesting of other dilutive securities, such as stock awards and warrants, using the treasury stock method, as their inclusion would have an anti-dilutive effect.

Common shares underlying stock awards, warrants and convertible preferred stock aggregating to 68.8 million shares and 53.0 million shares for the three and nine months ended September 30, 2020, respectively, and 19.8 million shares and 18.5 million shares for the comparable periods in 2019, respectively, were excluded from the calculation of diluted net loss per share because they were anti-dilutive.

Recently Adopted Accounting Standards

In August 2018, the FASB issued new accounting guidance which eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted this guidance on January 1, 2020. The adoption of this accounting guidance did not have a material impact on our condensed consolidated financial statements.

Recently Issued Accounting Standards

In June 2016, the FASB issued new accounting guidance which amends the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, the standard requires the use of a new forward-looking "expected credit loss" model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, the standard now

requires allowances to be recorded instead of reducing the amortized cost of the investment. For smaller reporting companies, the guidance is effective for fiscal years beginning after December 15, 2022, including interim periods therein. Early adoption is permitted. We do not expect the adoption of this accounting guidance to have a material impact on our condensed consolidated financial statements.

In August 2020, the FASB issued new accounting guidance for convertible instruments which eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features. Separate accounting is still required in certain cases. For smaller reporting companies, the guidance is effective for fiscal years beginning after December 15, 2023, including interim periods therein. Early adoption is permitted in fiscal years beginning after December 15, 2020. We do not expect the adoption of this accounting guidance to have a material impact on our condensed consolidated financial statements.

Although there were several other new accounting pronouncements issued or proposed by the FASB, we do not believe any of these have had or will have a material impact on our condensed consolidated financial statements.

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Description of Business	We operate in a highly regulated and competitive environment. The manufacturing and marketing of pharmaceutical products requires approval from, and is subject to, ongoing oversight by the Food and Drug Administration, or the FDA, in the United States, the European Medicines Agency, or the EMA, in the European Union, or the EU, and comparable agencies in other countries. Obtaining approval for a new therapeutic product is never certain, may take many years and may involve the expenditure of substantial resources.
Basis of Presentation	Basis of Presentation The accompanying unaudited financial information as of and for the three and nine months ended September 30, 2020 and 2019 has been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, such financial information includes all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial position at such date and the operating results and cash flows for such periods. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to the rules of the U.S. Securities and Exchange Commission, or the SEC. These unaudited financial statements and related notes should be read in conjunction with our audited financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K filed with the SEC on March 13, 2020. The condensed consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles in the U.S. for complete financial statements. As previously disclosed in our June 30, 2020 financial statements, we have adjusted for an immaterial error in prior periods by revising the historical financial statements presented herein by reducing accumulated other comprehensive loss and increasing accumulated deficit, each by $12.0 million, as of December 31, 2018. The correction did not have an impact on total assets, total stockholders’ equity, the condensed consolidated statements of operations, comprehensive loss, or cash flows.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of CTI and its wholly-owned subsidiary, CTI Life Sciences Limited, until its dissolution in November 2019, and our majority-owned subsidiary, Aequus Biopharma, Inc., or Aequus, until its dissolution in June 2020 as discussed in Note 5. Related Party Transactions. We had an approximately 60% interest in Aequus, and the remaining interest in Aequus not held by CTI was reported as noncontrolling interest in the condensed consolidated financial statements until its dissolution. All intercompany transactions and balances were eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles, or GAAP, requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of loss contingencies in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, income taxes, useful lives of equipment, commitments and contingencies, equity-based compensation forfeiture rates, collectability of receivables, and impairment of investments. Given the global economic climate and additional or unforeseen effects from the COVID-19 pandemic, these estimates are becoming more challenging, and actual results could differ materially from those estimates.
Liquidity	Liquidity The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business within one year after the date the condensed consolidated financial statements are issued. Our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. Over the next year and in the normal course of business, we will need to continue to conduct research, development, testing and regulatory compliance activities with respect to pacritinib and in the course of such activities, we will incur general and administrative expenses. Additional business activities will include procuring manufacturing and drug supply services, the costs of which, together with our projected general and administrative expenses, are expected to result in operating losses for the foreseeable future. We have incurred a net operating loss every year since our formation. As of September 30, 2020, we had an accumulated deficit of $2.3 billion, and we expect to continue to incur net losses for the foreseeable future. Our available cash, cash equivalents and short-term investments were $57.4 million as of September 30, 2020, and we expect that our present financial resources will only be sufficient to meet our obligations as they come due and to fund our operations into the fourth quarter of 2021. Based on our evaluation completed pursuant to Accounting Standards Update No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, these factors raise substantial doubt about our ability to continue as a going concern. Accordingly, we will need to acquire additional funds in order to develop our business and continue the development of pacritinib. The amount of funds that we will ultimately require will depend, in part, upon: regulatory approval developments and the extent to which we are required to conduct additional clinical trials; competitive market developments which require us to alter our business practices; and other unplanned expenses or business developments. We may seek to raise such capital through public or private equity financings, partnerships, collaborations, joint ventures, disposition of assets, debt financings or restructurings, bank borrowings or other sources of financing. However, we have a limited number of authorized shares of common stock available for issuance and additional funding obtained through the sale of such shares or otherwise may not be sufficient, available on favorable terms or available at all. If additional funds are raised by issuing equity securities, substantial dilution to existing stockholders may result. If we fail to obtain additional capital when needed, our ability to operate as a going concern will be harmed, and we may be required to delay, scale back or eliminate some or all of our research and development programs, be required to reduce our general and administrative expenses, be unable to attract and retain highly-qualified personnel, be unable to obtain and maintain contracts necessary to continue our operations at affordable rates with competitive terms, have to refrain from making our contractually required payments when due (including debt payments) and/or may be forced to cease operations, liquidate our assets and possibly seek bankruptcy protection. The amount of financing we require is dependent upon many factors relating to drug approval status and our commercialization plans, as well as our clinical trials. These factors include the number of clinical trial sites in a given clinical trial, the number of patients treated in a given clinical trial, the pace of patient enrollment and other matters that may impact clinical development, including changes to a clinical trial that we may initiate or that may be requested by the FDA or other regulators. There can be no assurance as to the amount of funding necessary to fund the development of pacritinib to completion or that we will be able to obtain this funding. In addition, our ability to comply with covenants under the loan and security agreement with Silicon Valley Bank, or SVB, may be affected by events beyond our control, and we may not be able to meet those covenants. A breach of any of these covenants, including a material adverse change in our business, operations or condition (financial or otherwise) could result in an event of default under the loan and security agreement, which could cause all of the outstanding indebtedness under the facility to become immediately due and payable. See Long-term Debt below for further discussion. The accompanying condensed consolidated financial statements do not include adjustments, if any, that may result from the outcome of this uncertainty.
Cash, Cash Equivalents and Short-term Investments	Cash, Cash Equivalents and Short-term Investments As of September 30, 2020 and December 31, 2019, our cash, cash equivalents and short-term investments consisted of cash, money market funds, U.S. government and agency securities and corporate debt securities. Cash equivalents and short-term investments are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. There are three levels of inputs used to measure fair value, with Level 1 having the highest priority and Level 3 having the lowest: •Level 1—Valuations based on unadjusted quoted prices for identical assets and liabilities in active markets. •Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. •Level 3—Valuations based on unobservable inputs that are supported by little or no market activity, reflecting our own assumptions. These valuations require significant judgment or estimation. We measure the fair value of money market funds based on the closing price reported by the fund sponsor from an actively traded exchange. We value all other securities using broker quotes that utilize observable market inputs. We did not hold cash, cash equivalents and short-term investments categorized as Level 3 assets as of September 30, 2020 and December 31, 2019.
Italian Value Added Tax Receivable	Italian Value Added Tax Receivable We historically carried out research and development activities in Italy and incurred value added tax, or VAT, from Italian suppliers on the acquisition of goods and services in Italy. This VAT should be considered as an input VAT credit. We treated the majority of our sales made in Italy without output VAT (on the basis that the supplies should be considered outside the scope of Italian VAT). This resulted in the value of input VAT exceeding the value of output VAT, and accordingly we submitted a refund claim for the VAT. The Italian Tax Authority, or the ITA, has challenged the treatment of the sales transactions and claimed that the sales transactions made by us should have been subject to output VAT. Our Italian VAT receivable was approximately €3.9 million as of September 30, 2020 and December 31, 2019. While we believe that our refund claim is valid, we concluded that the ongoing COVID-19 global pandemic negatively impacted the collectability of our Italian VAT receivables and deposit. Accordingly, we recorded a full provision against our Italian VAT receivables and deposit in the amount of $4.2 million, which is included in Other operating expenses for the nine months ended September 30, 2020. In addition, as disclosed in Note 6. Contingencies, the ITA assessed us for additional VAT payments for services we provided in Italy, which we do not believe we owe.
Leases	Leases Under ASC 842 - Leases, we determine if an arrangement is a lease at inception. We recognize a right-of-use asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as operating or finance at lease commencement, which will affect the pattern and classification of expense recognition in our condensed consolidated statements of operations. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide a readily determinable implicit rate of return, we use our incremental borrowing rate to derive the present value of lease payments, which is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. An operating lease right-of-use asset is measured at the amount of the lease liability, adjusted for prepaid or accrued lease payments, lease incentives received, unamortized initial direct costs and the impairment of the right-of-use asset. A lease may include options to extend or terminate the lease. When it is reasonably certain that we will exercise such an option, it is considered in the lease term. Right-of-use assets are tested for impairment in the same manner as long-lived assets used in operations. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the lease term. Lease expense for operating leases is recognized on a straight-line basis over the lease term as part of Research and development expenses and General and administrative expenses in our condensed consolidated statements of operations. Right-of-use assets are included in Other assets, and the current portion of lease liabilities and the non-current portion of lease liabilities are included in Other current liabilities and Other liabilities, respectively, in our condensed consolidated balance sheets.
Equity-based Compensation	Equity-based CompensationEquity-based compensation expense is recognized over the requisite service periods on awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For performance-based stock options and restricted stock, we record compensation expense over the estimated service period once the achievement of the performance-based milestone is considered probable.
Net Loss per Share	Net Loss per Share Basic net loss per common share is calculated based on the net loss attributable to common stockholders divided by the weighted average number of shares outstanding for the period. The calculation of diluted net loss per common share excludes the potential conversion of all dilutive convertible securities, such as convertible preferred stock, using the if-converted method, and the potential exercise or vesting of other dilutive securities, such as stock awards and warrants, using the treasury stock method, as their inclusion would have an anti-dilutive effect.
Recently Adopted and Issued Accounting Standards	Recently Adopted Accounting Standards In August 2018, the FASB issued new accounting guidance which eliminates certain disclosure requirements for fair value measurements for all entities, requires public entities to disclose certain new information and modifies some disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted this guidance on January 1, 2020. The adoption of this accounting guidance did not have a material impact on our condensed consolidated financial statements. Recently Issued Accounting Standards In June 2016, the FASB issued new accounting guidance which amends the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other financial instruments, the standard requires the use of a new forward-looking "expected credit loss" model that generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. For smaller reporting companies, the guidance is effective for fiscal years beginning after December 15, 2022, including interim periods therein. Early adoption is permitted. We do not expect the adoption of this accounting guidance to have a material impact on our condensed consolidated financial statements. In August 2020, the FASB issued new accounting guidance for convertible instruments which eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features. Separate accounting is still required in certain cases. For smaller reporting companies, the guidance is effective for fiscal years beginning after December 15, 2023, including interim periods therein. Early adoption is permitted in fiscal years beginning after December 15, 2020. We do not expect the adoption of this accounting guidance to have a material impact on our condensed consolidated financial statements. Although there were several other new accounting pronouncements issued or proposed by the FASB, we do not believe any of these have had or will have a material impact on our condensed consolidated financial statements.

Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands, € in Millions, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($) shares	Sep. 30, 2019 USD ($) shares	Sep. 30, 2020 USD ($) shares	Sep. 30, 2019 USD ($) shares	Sep. 30, 2020 EUR (€)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 EUR (€)	Dec. 31, 2018 USD ($)
Description Of Business And Significant Accounting Policies [Line Items]
Accumulated deficit	$ 2,313,005		$ 2,313,005			$ 2,275,556
Total cash, cash equivalents and short-term investments	57,412		57,412			33,666
VAT receivable \| €					€ 3.9		€ 3.9
Provision for value added tax assessments			4,200
Potential payment to tax authority	5,000		5,000		€ 4.3
Equity-based compensation	$ 1,200	$ 1,300	$ 3,385	$ 3,911
Anti-dilutive securities excluded from computation of earnings per share (in shares) \| shares	68.8	19.8	53.0	18.5
Unrealized loss from accumulated other comprehensive loss	$ 3		$ 3			$ 0
Revision of Prior Period, Error Correction, Adjustment
Description Of Business And Significant Accounting Policies [Line Items]
Unrealized loss from accumulated other comprehensive loss								$ 12,000
Aequus Biopharma, Inc \| Affiliated Entity
Description Of Business And Significant Accounting Policies [Line Items]
Interest in majority-owned subsidiary	60.00%		60.00%		60.00%

Description of Business and Summary of Significant Accounting Policies - Cash and Cash Equivalents and Short-term Investments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Abstract]
Cash and cash equivalents	$ 309	$ 188
Total cash, cash equivalents and short-term investments, amortized cost	57,409
Total cash, cash equivalents and short-term investments, gross unrealized gains	3
Total cash, cash equivalents and short-term investments, gross unrealized losses	0
Total cash, cash equivalents and short-term investments	57,412	33,666
Level 1 \| Money market funds
Debt Securities, Available-for-sale [Abstract]
Cash and cash equivalents	44,992	28,957
Level 2 \| U.S. government and agency securities
Debt Securities, Available-for-sale [Abstract]
Cost or Amortized Cost	0
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Total Estimated Fair Value	0	2,522
Level 2 \| Corporate debt securities
Debt Securities, Available-for-sale [Abstract]
Cost or Amortized Cost	12,108
Gross Unrealized Gains	3
Gross Unrealized Losses	0
Total Estimated Fair Value	$ 12,111	$ 1,999

Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Class of Stock [Line Items]
Proceeds from common stock offering	$ 60,000
Offering costs			$ 0	$ 45
Preferred stock stated value (in dollars per share)			$ 0.001		$ 0.001
Rights Offering
Class of Stock [Line Items]
Offering costs	$ 900
Series X Preferred Stock
Class of Stock [Line Items]
Shares issued (in shares)	4,429
Number of shares converted (in shares)	0	0.2873
Shares issued upon conversion of share (in shares)	2,873	2,873
Preferred stock outstanding (in shares)			4,429		0
Preferred stock stated value (in dollars per share)	$ 10,000	$ 10,000
Preferred stock eligible for conversion (in shares)	10,000	10,000
Maximum ownership upon conversion	9.99%
Series X Preferred Stock \| Rights Offering
Class of Stock [Line Items]
Shares available for future conversion (in shares)	44,300,000
Common Stock
Class of Stock [Line Items]
Shares issued (in shares)	15,700,000	15,699,000

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock authorized (in shares)	33,333	33,333
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	166,500,000	131,500,000
Common stock issued (in shares)	73,716,760	57,979,725
Common stock outstanding (in shares)	73,716,760	57,979,725
Series O Preferred Stock
Preferred stock issued (in shares)	12,575	12,575
Preferred stock outstanding (in shares)	12,575	12,575
Preferred stock liquidation preference	$ 25,150	$ 25,150
Series X Preferred Stock
Preferred stock issued (in shares)	4,429	0
Preferred stock outstanding (in shares)	4,429	0
Preferred stock liquidation preference	$ 44,290	$ 0

Equity Transactions	9 Months Ended
Equity Transactions	Sep. 30, 2020
Equity [Abstract]
Equity Transactions	4. Equity Transactions In March 2020, we completed a rights offering through the distribution of subscription rights to holders of our common stock and Series O Preferred Stock, or the Rights Offering. Under the Rights Offering, we issued a total of 15.7 million shares of our common stock and 4,429 shares of our Series X Preferred Stock, which shares of Series X Preferred Stock are convertible into 44.3 million shares of our common stock, for aggregate gross proceeds of approximately $60.0 million. Total offering costs were approximately $0.9 million. There was no beneficial conversion feature on our Series X Preferred Stock. Due to the revocable nature of the Rights Offering prior to closing, there was no separate accounting for the subscription rights and purchase guarantees made by certain of our stockholders prior to the closing date. At the time of issuance of our Series X Preferred Stock, the carrying amount of our Series X Preferred Stock was initially classified as mezzanine equity in the condensed consolidated balance sheet since we did not have an adequate number of authorized common stock to satisfy the number of required shares under the conversion option of our Series X Preferred Stock. In June 2020, our stockholders approved an increase in the number of authorized common stock, and as such, the settlement of the conversion option's exercise can now be controlled. Accordingly, the carrying amount of our Series X Preferred Stock was reclassified to permanent equity as of June 2020. During the first quarter of 2020, 0.2873 of a share of our Series X Preferred Stock converted into 2,873 shares of our common stock. There were 4,429 shares of our Series X Preferred Stock outstanding as of September 30, 2020. Each share of our Series X Preferred Stock has a stated value of $10,000 per share and is convertible into 10,000 shares of our common stock at the option of the holder at any time except as described above. The Series X Preferred Stock is subject to certain limitations, including that the holder will be prohibited from converting Series X Preferred Stock into common stock, if, as a result of such conversion, the holder, together with its affiliates, would beneficially own a number of shares of common stock above a conversion blocker, which is initially set at 9.99% of the total common stock then issued and outstanding immediately following the conversion of such shares of Series X Preferred Stock. In the event of our liquidation, dissolution or winding up, holders of Series X Preferred Stock will participate pari passu with any distribution of proceeds to holders of our common stock and holders of our Series O Preferred Stock. Holders of our Series X Preferred Stock are also entitled to receive dividends on shares of Series X Preferred Stock equal (on an as-if-converted-to common stock basis) to and in the same form as dividends actually paid on our common stock or other junior securities of the Company. Shares of Series X Preferred Stock will generally have no voting rights, except as required by law and except that the consent of a majority of the holders of the outstanding Series X Preferred Stock will be required to amend the terms of the Series X Preferred Stock.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	5. Related Party Transactions In March 2017, we and Aequus entered into a License and Promissory Note Termination Agreement. We had the right to terminate the License and Promissory Note Termination Agreement and require Aequus to assign all ACTH Product related assets to us without further compensation to Aequus if Aequus did not file an Investigational New Drug Application, or IND, for an ACTH Product with the FDA by September 6, 2019. For further details, see Part II, Item 8, “Notes to Consolidated Financial Statements, Note 15. Related Party Transactions” of our Annual Report on Form 10-K for the year ended December 31, 2019. Aequus did not file an IND by September 6, 2019. In June 2020, we terminated the License and Promissory Note Termination Agreement; however, we did not request Aequus to assign all ACTH Product related assets to us. In connection with such termination, we were also deemed to have relinquished all of our ownership interest in Aequus as it had been administratively dissolved at the time of termination. As discussed in Note 1. Description of Business and Summary of Significant Accounting Policies - Principles of Consolidation, Aequus was our majority-owned subsidiary until its dissolution in June 2020. Upon deconsolidation of Aequus, we recognized a loss of $3.8 million, which was recorded in Loss on dissolution of majority-owned subsidiary for the nine months ended September 30, 2020.

Contingencies	9 Months Ended
Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies	6. Contingencies In April 2009, December 2009 and June 2010, the Italian Tax Authority, or the ITA, issued notices of assessment to CTI - Sede Secondaria, or CTI (Europe), based on the ITA’s audit of CTI (Europe)’s value added tax, or VAT, returns for the years 2003, 2005, 2006 and 2007, or, collectively, the VAT Assessments. The ITA audits concluded that CTI (Europe) did not collect and remit VAT on certain invoices issued to non-Italian clients for services performed by CTI (Europe). The assessments, including interest and penalties, for the years 2003, 2006 and 2007 are €0.6 million, €2.8 million and €0.9 million, respectively. We believe that the services invoiced were non-VAT taxable consultancy services and that the VAT returns are correct as originally filed. We have appealed all of the assessments and are defending ourselves against the assessments both on procedural grounds and on the merits of the cases, although we can make no assurances regarding the ultimate outcome of these cases. There have been no changes to the status of the legal proceedings surrounding each respective VAT year return at issue since the filing of our Annual Report on Form 10-K for the year ended December 31, 2019. See Part II, Item 8, “Notes to Consolidated Financial Statements, Note 16. Commitments and Contingencies” of our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information. If the final decision of the Italian Supreme Court is unfavorable to us, or if, in the interim, the ITA were to make a demand for payment and we were to be unsuccessful in suspending collection efforts, we may be requested to pay the ITA an amount up to €4.3 million, or approximately $5.0 million converted using the currency exchange rate as of September 30, 2020, including interest and penalties for the period lapsed between the date in which the assessments were issued and the date of effective payment. We have not recorded this contingent liability in the financial statements as we do not believe the potential payment to the ITA is probable at this time.

Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Right-of-use assets	$ 2,469	$ 3,379
Italian VAT receivables, net	0	4,390
Italian VAT deposit, net	0	483
Clinical trial deposits	770	720
Refundable security deposit	194	194
Other	135	299
Other assets	$ 3,568	$ 9,465

Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Lease liabilities, non-current	$ 1,379	$ 2,993
Other long-term obligations	374	974
Total other liabilities	1,753	5,407
Secured Debt \| Loan and Security Agreement \| Silicon Valley Bank
Debt Instrument [Line Items]
End-of-facility lender fee	$ 0	$ 1,440

Contingencies (Details) € in Millions, $ in Millions	Sep. 30, 2020 USD ($)	Sep. 30, 2020 EUR (€)	Dec. 31, 2007 EUR (€)	Dec. 31, 2006 EUR (€)	Dec. 31, 2003 EUR (€)
VAT Assessments
Loss Contingencies [Line Items]
Range of possible loss	$ 5.0	€ 4.3	€ 0.9	€ 2.8	€ 0.6