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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2011	Mar. 02, 2012	Jun. 30, 2011
Entity Registrant Name	DELCATH SYSTEMS INC
Entity Central Index Key	0000872912
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 217,100,199
Entity Common Stock, Shares Outstanding		48,502,902
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 25,777	$ 45,621
Investments - Certificates of deposit	4,980	1,492
Prepaid expenses and other current assets	1,231	1,784
Total current assets	31,988	48,897
Property, plant and equipment
Land	154	0
Furniture and fixtures	2,251	669
Computers and equipment	1,212	549
Leasehold improvements	1,148	940
Property, plant and equipment, gross	4,765	2,158
Less: accumulated depreciation	(1,512)	(477)
Property, plant and equipment, net	3,253	1,681
Total assets	35,241	50,578
Current liabilities
Accounts payable	925	610
Accrued expenses	5,473	2,582
Warrant liability	2,439	18,005
Total current liabilities	8,837	21,197
Deferred revenue	300	300
Commitments and contingencies (Note 5)
Stockholders' equity
Preferred stock, $.01 par value; 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2011 and 2010	0	0
Common stock, $.01 par value; 70,000,000 shares authorized; 48,237,630 and 43,028,146 shares issued and 48,016,002 and 42,932,460 outstanding at December 31, 2011 and December 31, 2010, respectively	482	430
Additional paid-in capital	172,613	144,783
Deficit accumulated during the development stage	(146,940)	(116,055)
Treasury stock, at cost; 28,100 shares at December 31, 2011 and December 31, 2010	(51)	(51)
Accumulated other comprehensive loss	0	(26)
Total stockholders' equity	26,104	29,081
Total liabilities and stockholders' equity	$ 35,241	$ 50,578

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2011	Dec. 31, 2010
Stockholders' equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	70,000,000	70,000,000
Common stock, shares issued (in shares)	48,237,630	43,028,146
Common stock, shares outstanding (in shares)	48,016,002	42,932,460
Treasury stock, at cost (in shares)	28,100	28,100

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended			281 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011
Costs and expenses
General and administrative expenses	$ 21,283	$ 13,187	$ 3,899	$ 61,148
Research and development costs	25,173	17,556	9,637	81,764
Total costs and expenses	46,456	30,743	13,536	142,912
Operating loss	(46,456)	(30,743)	(13,536)	(142,912)
Change in fair value of warrant liability, net	15,566	(15,951)	(8,568)	(5,133)
Interest income	5	10	74	2,877
Other expense and interest expense	0	0	(27)	(274)
Net loss	$ (30,885)	$ (46,684)	$ (22,057)	$ (145,442)
Common share data:
Basic and diluted loss per share (in dollars per share)	$ (0.68)	$ (1.20)	$ (0.82)
Weighted average number of basic and diluted common shares outstanding (in shares)	45,236,921	38,991,481	27,072,556

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	In Treasury [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Deficit Accumulated During Development Stage [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at Aug. 04, 1988	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Balance (in shares) at Aug. 04, 1988	0	0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Sale of common stock, net of expenses	$ 137	$ 3	$ 0	29,911	0	0	30,051
Sale of common stock, net of expenses (in shares)	13,708,783	311,393	0
Sale of preferred stock	$ 0	$ 0	$ 24	1,741	0	0	1,765
Sale of preferred stock (in shares)	0	0	2,416,675
Dividends paid on preferred stock	$ 7	$ 0	$ 0	992	(1,499)	0	(500)
Dividends paid on preferred stock (in shares)	690,910	0	0
Conversion of preferred stock	$ 8	$ 0	$ (24)	16	0	0	0
Conversion of preferred stock (in shares)	833,873	0	(2,416,675)
Exercise of stock options	$ 15	$ 0	$ 0	2,758	0	0	2,773
Exercise of stock options (in shares)	1,501,993	3,450	0
Vesting of stock options	$ 0	$ 0	$ 0	446	0	0	446
Compensation expense for issuance of stock options	0	0	0	5,092	0	0	5,092
Forfeiture since inception of stock options	0	0	0	(1,241)	0	0	(1,241)
Exercise of warrants	$ 82	$ 0	$ 0	14,267	0	0	14,349
Exercise of warrants (in shares)	8,223,484	0	0
Comprehensive loss:
Shares and warrants issued as compensation, in connection with conversion of short-term borrowings and as settlement of Consent Solicitation lawsuit	$ 4	$ 1	$ 0	3,363	0	0	3,368
Shares and warrants issued as compensation, in connection with conversion of short-term borrowings and as settlement of Consent Solicitation lawsuit (in shares)	427,761	99,216	0
Repurchases of stock	$ 0	$ (51)	$ 0	0	0	0	(51)
Repurchases of stock (in shares)	0	(28,100)	0
Shares returned due to relevant technology milestones not being fully achieved and as settlement of a dispute with a former director	$ 0	$ (4)	$ 0	(1)	0	0	(5)
Shares returned due to relevant technology milestones not being fully achieved and as settlement of a dispute with a former director (in shares)	(3,450)	(414,059)	0
Deficit accumulated from inception	$ 0	$ 0	$ 0	0	(45,815)	0	(45,815)
Change in unrealized loss on investments	0	0	0	0	0	(24)	(24)
Balance at Dec. 31, 2008	$ 253	$ (51)	$ 0	57,344	(47,314)	(24)	10,208
Balance (in shares) at Dec. 31, 2008	25,383,354	(28,100)	0
Balance at Aug. 04, 1988	$ 0	$ 0	$ 0	0	0	0	0
Balance (in shares) at Aug. 04, 1988	0	0	0
Comprehensive loss:
Net loss							(145,442)
Balance at Dec. 31, 2011	$ 482	$ (51)	$ 0	172,613	(146,940)	0	26,104
Balance (in shares) at Dec. 31, 2011	48,237,630	(28,100)	0
Balance at Dec. 31, 2008	$ 253	$ (51)	$ 0	57,344	(47,314)	(24)	10,208
Balance (in shares) at Dec. 31, 2008	25,383,354	(28,100)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense for issuance of stock options	$ 0	$ 0	$ 0	1,579	0	0	1,579
Sale of stock (including 1,043,478 warrants to purchase one share of common stock at $3.99)	$ 9	$ 0	$ 0	467	0	0	476
Sale of stock (including 1,043,478 warrants to purchase one share of common stock at $3.99) (in shares)	869,565	0	0
Exercise of warrants	$ 1	$ 0	$ 0	355	0	0	356
Exercise of warrants (in shares)	103,512	0	0
Sale of stock, net of expenses	$ 98	$ 0	$ 0	32,355	0	0	32,453
Sale of stock, net of expenses (in shares)	9,775,000	0	0
Comprehensive loss:
Net loss	$ 0	$ 0	$ 0	0	(22,057)	0	(22,057)
Change in unrealized loss on investments	0	0	0	0	0	8	8
Total comprehensive loss:	0	0	0	0	0	0	(22,049)
Balance at Dec. 31, 2009	$ 362	$ (51)	$ 0	92,835	(69,371)	(16)	23,759
Balance (in shares) at Dec. 31, 2009	36,223,097	(28,100)	0
Comprehensive loss:
Compensation expense for restricted stock	$ 1	$ 0	$ 0	735	0	0	736
Compensation expense for restricted stock (in shares)	91,666	0	0
Compensation expense for issuance of stock options	$ 0	$ 0	$ 0	3,839	0	0	3,839
Exercise of warrants and options, common stock surrendered upon restricted stock vesting	$ 12	$ 0	$ 0	3,830	0	0	3,842
Exercise of warrants and options, common stock surrendered upon restricted stock vesting (in shares)	1,206,007	0	0
Fair value of warrants reclassified from liability to additional paid-in capital upon exercise	$ 0	$ 0	$ 0	9,154	0	0	9,154
Sale of stock, net of expenses	$ 52	$ 0	$ 0	33,454	0	0	33,506
Sale of stock, net of expenses (in shares)	5,185,000	0	0
Net loss	$ 0	$ 0	$ 0	0	(46,684)	0	(46,684)
Change in unrealized loss on investments	0	0	0	0	0	(10)	(10)
Total comprehensive loss:	0	0	0	0	0	0	(46,694)
Balance at Dec. 31, 2010	$ 430	$ (51)	$ 0	144,783	(116,055)	(26)	29,081
Balance (in shares) at Dec. 31, 2010	43,028,146	(28,100)	0
Comprehensive loss:
Compensation expense for restricted stock	$ 4	$ 0	$ 0	1,671	0	0	1,675
Compensation expense for restricted stock (in shares)	414,042	0	0
Compensation expense for issuance of stock options	$ 0	$ 0	$ 0	3,605	0	0	3,605
Exercise of options, common stock surrendered upon restricted stock vesting	$ 0	$ 0	$ 0	82	0	0	82
Exercise of options, common stock surrendered upon restricted stock vesting (in shares)	36,272	0	0
Sale of stock, net of expenses	$ 50	$ 0	$ 0	23,491	0	0	23,541
Sale of stock, net of expenses (in shares)	5,000,000	0	0
Net loss	$ 0	$ 0	$ 0	0	(30,885)	0	(30,885)
Change in unrealized loss on investments	0	0	0	0	0	26	26
Total comprehensive loss:	0	0	0	0	0	0	(30,859)
Balance at Dec. 31, 2011	$ 482	$ (51)	$ 0	172,613	(146,940)	0	26,104
Balance (in shares) at Dec. 31, 2011	48,237,630	(28,100)	0
Comprehensive loss:
Compensation expense for restricted stock	$ 2	$ 0	$ 0	$ 652	$ 0	$ 0	$ 654
Compensation expense for restricted stock (in shares)	173,212	0	0

Consolidated Statements of Stockholders' Equity (Parenthetical)	12 Months Ended
	Dec. 31, 2009 $ / shares shares
Consolidated Statements of Stockholders' Equity [Abstract]
Number of warrants to purchase one share of common stock issued as part of sale of stock (in shares) \| shares	1,043,478
Exercise price of warrants (in dollars per share) \| $ / shares	$ 3.99

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended			281 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011
Cash flows from operating activities:
Net loss	$ (30,885)	$ (46,684)	$ (22,057)	$ (145,442)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock option compensation expense	3,605	3,839	1,579	14,383
Restricted stock and warrant compensation expense	654	1,675	736	4,210
Depreciation expense	1,035	472	8	1,567
Amortization of organization costs and loss on disposal of equipment	0	7	3	52
Warrant liability fair value adjustment	(15,566)	15,951	8,568	5,133
Non-cash interest income	0	(3)	0	(12)
Changes in assets and liabilities:
Decrease (increase) in prepaid expenses and other current assets	553	(1,001)	(446)	(1,227)
Decrease in investment in common stock	26	10	8	46
Increase in accounts payable and accrued expenses	3,206	1,351	1,138	6,398
Deferred revenue	0	300	0	300
Net cash used in operating activities	(37,372)	(24,083)	(10,463)	(114,592)
Cash flows from investing activities:
Purchase of equipment, furniture and fixtures	(2,607)	(1,638)	(515)	(4,830)
Purchase of short-term investments and marketable equity securities	(4,980)	(3,235)	0	(49,672)
Proceeds from maturities of short-term investments	1,492	1,743	4,049	44,654
Organization costs	0	0	0	(42)
Net cash (used in) provided by investing activities	(6,095)	(3,130)	3,534	(9,890)
Cash flows from financing activities:
Net proceeds from sale of stock and exercise of stock options and warrants	23,623	37,348	35,476	149,105
Repurchases of common stock	0	0	0	(51)
Dividends paid on preferred stock	0	0	0	(500)
Proceeds from short-term borrowings	0	0	0	1,705
Net cash provided by financing activities	23,623	37,348	35,476	150,259
Decrease (increase) in cash and cash equivalents	(19,844)	10,135	28,547	25,777
Cash and cash equivalents at beginning of period	45,621	35,486	6,939	0
Cash and cash equivalents at end of period	25,777	45,621	35,486	25,777
Supplemental cash flow information:
Cash paid for interest	0	0	0	171
Supplemental non-cash activities:
Cashless exercise of stock options and shares surrendered upon restricted stock vesting	(61)	700	0	1,184
Conversion of debt to common stock	0	0	0	1,705
Common stock issued for preferred stock dividends	0	0	0	999
Common stock issued as compensation for stock sale	0	0	0	510
Fair value of warrants issued	0	0	2,191	6,460
Fair value of warrants reclassified from liability to additional paid-in capital upon exercise	$ 0	$ 9,154	$ 0	$ 9,154

Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Description of Business and Summary of Significant Accounting Policies [Abstract]

Description of Business and Summary of Significant Accounting Policies

(1)	Description of Business and Summary of Significant Accounting Policies

We are a development stage, specialty pharmaceutical and medical device company focused on oncology, initially cancers in the liver. Since our inception, we have directed our research efforts towards the development and clinical study of the Delcath chemosaturation system.

The Delcath chemosaturation system allows the administration of concentrated regional chemotherapy by isolating the circulatory system of the targeted organ. Once the organ is isolated, the Delcath chemosaturation system delivers high doses of chemotherapeutic agents directly to the liver, while limiting systemic exposure and the related side effects by filtering the blood prior to returning it to the patient. The Delcath chemosaturation system involves a series of three catheter insertions, each of which is placed percutaneously through standard interventional radiology techniques. The procedure is minimally invasive and repeatable allowing for multiple courses of treatment with chemotherapeutic drugs and the potential for concomitant cancer therapies. We believe that the Delcath chemosaturation system is a platform technology that may have broader applicability, including the use of other drugs to treat the liver, as well as for the treatment of cancers in other organs and regions of the body.

The Company has incurred losses since inception and has a deficit accumulated during the development stage of $146.9 million as of December 31, 2011. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales. Management believes that its capital resources are adequate to fund operations through 2011, but anticipates that additional working capital may be required to continue operations. To the extent additional capital is not available when needed, the Company may be forced to abandon some or all of its development and commercialization efforts, which would have a material adverse effect on the prospects of the business. Operations of the Company are subject to certain risks and uncertainties, including, among others, uncertainty of product development; uncertainty regarding regulatory approval; technological uncertainty; uncertainty regarding patents and proprietary rights; comprehensive government regulations; limited commercial manufacturing, marketing or sales experience; and dependence on key personnel.

Basis of Consolidated Financial Statement Presentation and Use of Estimates

The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). The preparation of consolidated financial statements in conformity with GAAP requires management to make assumptions and estimates that impact the amounts reported in the Company's consolidated financial statements. The consolidated financial statements include the accounts of all entities controlled by Delcath. All significant inter-company accounts and transactions are eliminated. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company's balance sheets and the amount of expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for derivative instrument liabilities, stock-based compensation, income taxes and research and development costs. Such assumptions and estimates are subject to change in the future as additional information becomes available or as circumstances are modified. Actual results could differ from these estimates.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost, less accumulated depreciation. The Company provides for depreciation on a straight line basis over the estimated useful lives of the assets which range from three to seven years. Leasehold improvements of $1.1 million at December 31, 2011 will be amortized over the shorter of the lease term or the estimated useful life of the related assets when they are placed into service. Depreciation expense for the years ended December 31, 2011, 2010 and 2009 was $1.0 million, $0.5 million, and $7,981, respectively. Since inception, the Company has incurred depreciation expense of $1.6 million. Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized.

Income Taxes

The Company accounts for income taxes following the asset and liability method in accordance with the FASB ASC 740 “Income Taxes.” Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled. See Note 4 for additional information.

Stock Based Compensation

The Company accounts for its share-based compensation in accordance with the provisions of FASB ASC 718, which establishes accounting for equity instruments exchanged for employee services and FASB ASC 505-50, which establishes accounting for equity-based payments to non-employees. Under the provisions of FASB ASC 718, share-based compensation is measured at the grant date, based upon the fair value of the award, and is recognized as an expense over the option holders' requisite service period (generally the vesting period of the equity grant). The Company is required to record compensation cost for all share-based payments granted to employees based upon the grant date fair value, estimated in accordance with the provisions of FASB ASC 718. Under the provisions of FASB ASC 505-50, measurement of compensation cost related to common shares issued to non-employees for services is based on the value of the services provided or the fair value of the shares issued. The measurement of non-employee stock-based compensation is subject to periodic adjustment as the underlying equity instrument vests. The Company expensed its share-based compensation for share-based payments granted under the accelerated method, which treats each vesting tranche as if it were an individual grant.

The Company periodically grants stock options for a fixed number of shares of common stock to its employees, directors and non-employee contractors, with an exercise price greater than or equal to the fair market value of Delcath's common stock at the date of the grant. The Company estimates the fair value of stock options using an option pricing model. Key inputs used to estimate the fair value of stock options include the exercise price of the award, the expected post-vesting option life, the expected volatility of Delcath's stock over the option's expected term, the risk-free interest rate over the option's expected term, and Delcath's expected annual dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards.

Derivative Instrument Liability

The Company accounts for derivative instruments in accordance with FASB ASC 815, which establishes accounting and reporting standards for derivative instruments and hedging activities, including certain derivative instruments embedded in other financial instruments or contracts and requires recognition of all derivatives on the balance sheet at fair value, regardless of the hedging relationship designation. Accounting for changes in the fair value of the derivative instruments depends on whether the derivatives qualify as hedge relationships and the types of relationships designated are based on the exposures hedged. At December 31, 2011 and 2010, the Company did not have any derivative instruments that were designated as hedges.

Fair Value Measurements

The Company adopted FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances.

FASB ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Net Loss per Common Share

For the years ended December 31, 2011, 2010 and 2009 potential common shares from the exercise of options and warrants and the unvested shares of restricted stock were excluded from the computation of diluted earnings per share (EPS) because their effects would be antidilutive.

Shares excluded from the computation of diluted EPS:

	2011		2010		2009
Stock options		2,971,381		2,398,334		1,828,084
Unvested restricted shares		193,532		67,590		307,910
Warrants		2,512,934		2,512,934		3,746,184
Total		5,677,847		4,978,858		5,882,178

Research and Development Costs

Research and development costs include the costs of materials, personnel, outside services and applicable indirect costs incurred in development of the Company's proprietary drug delivery system. All such costs are charged to expense when incurred.

General and Administrative Costs

General and administrative costs include salaries and related expenses for the Company's executive and administrative staff, recruitment and employee retention expenses, professional license and organizational fees, business development and certain general legal activities.

Cash Equivalents and Concentrations of Credit Risk

The Company considers investments with original maturities of three months or less at date of acquisition to be cash equivalents. The Company has deposits that exceed amounts insured by the Federal Deposit Insurance Corporation (FDIC), however, the Company does not consider this a significant concentration of credit risk based on the strength of the financial institution.

Investments

Management determines the appropriate classification of securities at the time of purchase and reevaluates such classification as of each balance sheet date. The Company's securities are classified as either available-for-sale or held-to-maturity. Investments classified as held-to-maturity are stated at amortized cost. Investments classified as available-for-sale are stated at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders' equity.

Deferred Revenue Recognition

Deferred revenue on the accompanying balance sheets includes payment received upon execution of a research and distribution agreement with Chi-Fu Trading Co, Ltd. The Company will amortize deferred revenue over the expected obligation period of the agreement once this amount is reasonably determinable.

Segment Information

The Company currently operates in one business segment, which is the development and commercialization of the Delcath chemosaturation system. A single management team that reports to the Chief Executive Officer comprehensively manages the business. Accordingly, the Company does not have separately reportable segments.

Recently Adopted Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs ("ASU 2011-04"). ASU 2011-04 amended the FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures ("ASC 820") to converge the fair value measurement guidance in U.S. generally accepted accounting principles ("GAAP") and International Financial Reporting Standards ("IFRSs"). Some of the amendments clarify the application of existing fair value measurement requirements, while other amendments change particular principles in ASC 820. In addition, ASU 2011-04 requires additional fair value disclosures. ASU 2011-04 is effective for fiscal years beginning after December 15, 2011 and should be applied prospectively. Delcath does not expect ASU 2011-04 to have a significant impact on its consolidated results of operations or financial position.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income ("ASU 2011-05"). ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity and requires an entity to present items of net income, other comprehensive income and total comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 ("ASU 2011-12"). ASU 2011-12 defers the effective date of changes in 2011-05 that relate to the presentation of reclassification adjustments for each component of other comprehensive income in both net income and other comprehensive income. The amendments in the ASU's do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2011-05 and ASU 2011-12 are both effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and must be applied retrospectively. Delcath will be required to adopt ASU 2011-05 and ASU 2011-12 no later than the quarter beginning January 1, 2012. As the ASU's require additional presentation only, there will be no impact to Delcath's consolidated results of operations or financial position.

Investments

12 Months Ended

Dec. 31, 2011

Investments, Debt and Equity Securities [Abstract]

Investments

(2)	Investments

The Company invests the majority of its cash in money market funds and certificates of deposit. The money market funds are accounted for based on the guidance for fair value measurements and are discussed further in Note 6. The Company's certificates of deposit are accounted for based on the guidance for investments, which requires securities to be categorized as either trading, available-for-sale or held-to-maturity. The certificates of deposit are classified as held-to-maturity and, as such, are carried at amortized cost. As of December 31, 2011, the Company held certificates of deposit with original maturities of three to twelve months.

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6511694
-Topic 320

+ Details

Stockholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

(3)	Stockholders' Equity

Stock Issuances

In September 2007, the Company completed the sale of 3,833,108 shares of its common stock and the issuance of warrants to purchase 1,916,554 common shares (the “2007 Warrants” and together with the 2009 Warrants, the “Warrants”) in a private placement to institutional and accredited investors. The Company received net proceeds of $13.3 million in this transaction. The Company allocated $4.3 million of the total proceeds to 2007 Warrants (see below). The fair value of the 2007 Warrants on September 24, 2007 was determined using an option pricing model assuming a risk free interest rate of 4.20%, volatility of 81.30% and an expected life equal to the contractual life of the warrants (September 2012). The 2007 Warrants were initially exercisable at $4.53 per share beginning six months after the issuance thereof and will expire on September 21, 2012. As required by the 2007 Warrant agreement, both the exercise price and number of warrants were adjusted following the Company's June 9, 2009 sale of common stock. The 2007 Warrants are currently exercisable at $3.44 per share with 1,469,456 warrants outstanding at December 31, 2011. The shares were issued pursuant to an effective registration statement on Form S-3.

In June 2009, the Company completed the sale of 869,565 shares of its common stock and the issuance of warrants to purchase 1,043,478 common shares (the “2009 Warrants”) pursuant to a subscription agreement with a single investor. The Company received gross proceeds of $3.0 million, with net cash proceeds after related expenses from this transaction of approximately $2.7 million. Of those proceeds, the Company allocated an estimated fair value of $2.2 million to the 2009 Warrants (see below), resulting in net proceeds of $0.5 million. The fair value of the 2009 Warrants on June 15, 2009 was determined using an option pricing model assuming a risk free interest rate of 2.75%, volatility of 72.93% and an expected life equal to the contractual life of the warrants (June 2014). The 2009 Warrants are currently exercisable at $3.60 per share with 1,043,478 warrants outstanding at December 31, 2011 and will expire on June 15, 2014. The shares and warrants were issued pursuant to an effective registration statement on Form S-3.

The $2.2 million in proceeds allocated to the 2009 Warrants and the $4.3 million in proceeds allocated to the 2007 Warrants are classified as derivative instrument liabilities. The 2007 Warrants are subject to “full ratchet” protection upon certain equity issuances below $3.44 per share (as may be further adjusted). The 2009 Warrants are subject to a potential adjustment in the exercise price adjustment upon certain equity issuances below $3.60 per share (as may be further adjusted). The Warrants are therefore considered to be derivative instrument liabilities that are subject to mark-to-market adjustment each period. As a result, for the twelve month period ended December 31, 2011, the Company recorded pre-tax derivative instrument income of $15.6 million. The resulting derivative instrument liabilities totaled $2.5 million at December 31, 2011. Management expects that the Warrants will either be exercised or expire worthless, at which point the then existing derivative instrument liabilities will be credited to stockholders' equity. The fair value of the Warrants at December 31, 2011 was determined by using an option pricing model assuming a risk free interest rate of 0.30% for the 2009 Warrants and 0.09% for the 2007 Warrants, volatility of 79.14% for the 2009 Warrants and 85.05% for the 2007 Warrants and an expected life equal to the contractual life of the Warrants (June 2014 and September 2012, respectively).

In August 2010, the Company completed the sale of 5,185,000 shares of its common stock pursuant to an underwriting agreement, raising approximately $33.5 million after expenses. The shares were issued pursuant to an effective registration statement on Form S-3 (333-165677).

In July 2011, the Company completed the sale of 5,000,000 shares of its common stock pursuant to an underwriting agreement, raising approximately $23.5 million after expenses. The shares were issued pursuant to an effective registration statement on Form S-3 (333-165677).

Common Stock Repurchases

Pursuant to a stock repurchase plan approved in 2002 by the Company's board of directors, the Company repurchased 28,100 shares of common stock for $51,103 during 2002. The Company had been authorized by the board of directors to purchase up to seven percent of its then outstanding common stock (290,289).

Stock Option Plans

The Company established the 2004 Stock Incentive Plan and the 2009 Stock Incentive Plan (collectively, the “Plans”) under which 3,000,000, and 4,200,000 shares, respectively, were reserved for the issuance of stock options, stock appreciation rights, restricted stock, stock grants and other equity awards. A stock option grant allows the holder of the option to purchase a share of the Company's common stock in the future at a stated price. The Plans are administered by the Compensation and Stock Option Committee of the board of directors which determines the individuals to whom awards shall be granted as well as the type, terms and conditions of each award, the option price and the duration of each award.

During 2004 and 2009, respectively, the 2004 and 2009 Stock Incentive Plans became effective. Options granted under the Plans vest as determined by the Company's Compensation and Stock Option Committee and expire over varying terms, but not more than ten years from the date of grant. Stock option activity for 2011, 2010, and 2009 is as follows:

	Number of Options			Exercise Price per Share		Weighted Average Exercise Price		Weighted Average Remaining Life (Years)

Outstanding at December 31, 2008		1,460,000		$	1.23–6.18	$	3.44		3.68
Granted		1,885,000			1.24-6.09		3.94
Expired	-
Exercised	-
Outstanding at December 31, 2009		3,345,000		$	1.23–6.18	$	3.72		6.58
Granted		700,650			5.28-15.54		9.81
Expired		(120,000	)		2.78-3.59		3.25
Forfeited		(25,000	)		4.12-6.18		4.81
Exercised		(140,000	)		1.43-6.18		3.52
Outstanding at December 31, 2010		3,760,650		$	1.23-15.54	$	4.88		6.65
Granted		671,326			2.00-9.18		5.72
Expired		(120,000	)		3.28		3.28
Forfeited		(136,900	)		1.40-9.93		4.65
Exercised		(45,327	)		2.44-3.28		3.18
Outstanding at December 31, 2011		4,129,749		$	1.23-15.54	$	5.09		6.38

Exercisable at December 31, 2011		2,971,381		$	1.23-15.54	$	4.56		5.42

The estimated fair value of each option award granted was determined on the date of grant using an option pricing model with the following assumptions for option grants during the years ended December 31, 2011, 2010 and 2009:

	Year Ended December 31,
	2011			2010			2009
Weighted average risk-free interest rate		2.07	%		2.54	%		2.44	%
Weighted average expected volatility		74.64	%		73.80	%		74.58	%
Expected volatility		73.88%-79.11	%		72.16% - 75.4	%		73.12% - 86.0	%
Dividend yield		0	%		0.00	%		0.00	%
Weighted average expected option term (in years)		6.00			5.87			5.32
Weighted average grant date fair value	$	3.79		$	6.30		$	2.61

No dividend yield was assumed because the Company has never paid a cash dividend on its common stock. Volatilities were developed using the Company's historical volatility. The risk-free interest rate was developed using the U.S. Treasury yield for periods equal to the expected life of the stock options on the grant date. The expected holding period was developed based on the mid-point between the vesting date and the expiration date of each respective grant as permitted under FASB ASC 718. This method of determining the expected holding period was utilized because the Company does not have sufficient historical experience from which to estimate the period.

A summary of the Company's non-vested options to purchase shares as of December 31, 2011 and changes during the twelve months ended December 31, 2011 and December 31, 2010 are presented below:

	Non-Vested Options
	Number of Options			Weighted Average Fair Value

Non-vested at January 1, 2010		1,516,916		$	4.09
Granted		599,400			9.38
Vested		(729,000	)		4.12
Forfeited		(25,000	)		4.81
Non-vested at December 31, 2010		1,362,316		$	6.39
Granted		670,826			5.72
Vested		(812,874	)		5.60
Forfeited		(61,900	)		8.58
Non-vested at December 31, 2011		1,158,368		$	6.44

Compensation expense recognized relating to stock options granted to employees totaled $3.6 million, $3.6 million, and $1.6 million, in 2011, 2010, and 2009, respectively. Since inception, the Company has recognized $14.4 million in expense related to stock option compensation. In 2011, $2.2 million was charged to general and administrative expenses, while $1.4 million was charged to research and development expenses. In 2010, $2.5 million was charged to general and administrative expenses, while $1.1 million was charged to research and development expenses. In 2009, $0.7 million was charged to general and administrative expenses, while $0.9 million was charged to research and development expenses. Additional compensation expense of $2.1 million, relating to the unvested portion of stock options granted, is expected to be recognized over a remaining average period of 1.83 years.

The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2011 is $0.6 million. The aggregate intrinsic value represents the total pretax intrinsic value, based on options with an exercise price less than the Company's closing stock price of $3.05 as of December 31, 2011, which would have been received by the option holders had those option holders exercised their options as of that date.

A summary of the Company's restricted stock activity as of December 31, 2011 and changes during the twelve months ended December 31, 2011 and December 31, 2010 are presented below:

	Restricted Stock Activity
	Number of Shares			Weighted Average Grant Date Fair Value

Non-vested at January 1, 2010		307,910		$	5.23
Granted		56,132			11.16
Vested		(296,452	)		6.02
Forfeited		-
Non-vested at December 31, 2010		67,590		$	6.71
Granted		188,277			5.67
Vested		(47,270	)		5.62
Forfeited		(15,065	)		8.35
Non-vested at December 31, 2011		193,532		$	5.84

Compensation expense recognized relating to restricted stock granted to employees totaled $0.7 million, $1.7 million, and $0.7 million, in 2011, 2010, and 2009, respectively. Since inception, the Company has recognized $4.2 million in expense related to restricted stock and warrant compensation. In 2011, $0.5 million was charged to general and administrative expenses, while $0.1 million was charged to research and development expenses. In 2010, $0.8 million was charged to both general and administrative expenses and to research and development expenses. In 2009, $0.2 million was charged to general and administrative expenses, while $0.6 million was charged to research and development expenses. Additional compensation expense of $0.6 million relating to the unvested portion of restricted stock granted, is expected to be recognized over a remaining average period of 2.35 years.

Warrants

A summary of warrant activity is as follows:

	The Plans
	Warrants			Exercise Price per Share		Weighted Average Exercise Price		Weighted Average Remaining Life (Years)

Outstanding at December 31, 2008		2,464,087		$	3.01–4.53	$	4.30		3.15
Issued		1,650,760			3.44–3.60		3.54
Exercised		(103,512	)		3.44		3.44
Expired		(265,151	)		3.01		3.01
Outstanding at December 31, 2009		3,746,184		$	3.44–3.91	$	3.52		3.08
Issued		–
Exercised		(1,159,000	)		3.44–3.91		3.52
Expired		(74,250	)		3.91		3.91
Outstanding at December 31, 2010		2,512,934		$	3.44-3.60	$	3.51		2.45
Issued		–
Exercised		–
Expired		–
Outstanding at December 31, 2011		2,512,934		$	3.44-3.60	$	3.51		1.45

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
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-Name Staff Accounting Bulletin (SAB)
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

(4)	Income Taxes

The provision for income taxes differs from the amount computed by applying the statutory rate as follows:

	Year Ended December 31,
(in thousands)	2011			2010			2009
Income taxes using U.S. federal statutory rate	$	(10,501	)	$	(15,872	)	$	(7,643	)
State income taxes, net of federal benefit		(3,418	)		(4,276	)		(675	)
Foreign rate differential		52			–			–
Valuation allowance		20,563			15,041			5,671
Derivative charge		(5,292	)		5,423			2,913
Stock option exercises and cancellations		102			–			67
Research and development credits		(1,633	)		(519	)		(345	)
Other		127			203			12
Total	$	–		$	–		$	–

Significant components of the Company's deferred tax assets are as follows:

(in thousands)	2011		2010
Deferred tax assets:
Employee compensation accruals	$	4,973	$	3,345
Accrued liabilities		283		231
Research tax credits		2,708		1,076
Other		3		14
Net operating losses		47,118		29,868
Total deferred tax assets		55,085		34,534

Deferred tax liability:
Total deferred tax liabilities		–		–

Valuation allowance		55,085		34,534
Net deferred tax assets	$	–	$	–

As of December 31, 2011 and December 31, 2010, the Company had net operating loss carryforwards for U.S. federal income tax purposes of approximately $122.1 million and $81.1 million, respectively. A portion of the federal amount, $10.2 million, is subject to an annual limitation of approximately $123,000 as a result of a change in the Company's ownership through May 2003, as defined by Federal Internal Revenue Code Section 382 and the related income tax regulations. As a result of the limitation, approximately $114.3 million is available to offset future federal taxable income which expires through 2031. As of December 31, 2011 and December 31, 2010, the Company had net operating loss carryforwards for state and city income tax purposes of approximately $180.2 million and $129.3 million, respectively, which expire through 2031. As of December 31, 2011, the Company had a net operating loss carryforward for foreign income tax purposes of $241,841 which has an indefinite carryforward period. There were no foreign net operating losses prior to 2011.

Management has established a 100% valuation allowance against the deferred tax assets as management does not believe it is more likely than not that these assets will be realized. The Company's valuation allowance increased by approximately $20.5 million, $15.0 million, $5.9 million, $3.2 million and $1.8 million in 2011, 2010, 2009, 2008, and 2007, respectively. The Company has a tax benefit of approximately $1.0 million related to the exercise of non qualified stock options. Pursuant to FASB ASC 718, the benefit will be recognized and recorded to additional paid in capital when the benefit is realized through the reduction of taxes payable.

The Company complies with the provisions of FASB ASC 740-10 in accounting for its uncertain tax positions. ASC 740-10 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely that not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company has determined that the Company has no significant uncertain tax positions requiring recognition under ASC 740-10.

The Company is subject to income tax in the U.S., the Republic of Ireland, and certain state jurisdictions. The Company has not been audited by the U.S. Internal Revenue Service, international tax authorities, or any states in connection with income taxes. The periods from December 31, 2004 to December 31, 2011 remain open to examination by the U.S. Internal Revenue Service, and international and state tax authorities.

Delcath recognizes interest accrued related to unrecognized tax benefits and penalties, if incurred, as a component of income tax expense.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Commitments

12 Months Ended

Dec. 31, 2011

Commitments [Abstract]

Commitments

(5)	Commitments

Operating Leases

In February 2010, the Company entered into an agreement to lease (Initial Lease) 8,629 square feet of office space in New York, New York with an option to expand an additional 8,629 square feet. The term of the Initial Lease began in March, 2010 and provides for total annual base rental payments of $457,337 during years 1-3 and the first half of year 4 of the Initial Lease term, and of $491,853 during the second half of year 4 and years 5-7 of the Lease term. The Initial Lease also requires the Company to pay customary building operating expenses and a pro-rata share of real estate taxes.

In September 2010, the Company exercised its option right under the Initial Lease and entered into an agreement to lease (Lease Amendment) an additional 8,629 square feet of office space in New York, New York. The term of the Lease Amendment began in January 2011 and will expire in November 2020. In addition, the Lease Amendment extends the term of the Initial Lease to November 2020. The Lease Amendment provides for annual base rent of $504,078 for years 1-5 and of $547,533 for years 6-11 of the Lease Amendment term. In addition, the Lease Amendment provides for total base rent on the space leased under the Initial Lease of $543,627 for the extended term of November 2017 – November 2020. Combined, the Initial Lease and the Lease Amendment provide for annual rent of $961,000 in 2012, $970,000 in 2013, $996,000 in 2014 and 2015, $1.0 million in 2016, and $1.1 million in 2017-2020.

In September 2009, the Company entered into an agreement to lease 10,320 square feet located at 566 Queensbury Avenue, Queensbury, NY (the “Facility”) for a three year period with an option to purchase. The Facility houses a portion of the Company's research and manufacturing operations. The term of the lease commenced on September 1, 2009. The lease provides for annual base rent of $51,600, as well as the payment of customary building expenses and real estate taxes. The Company has an option to purchase the Facility upon delivery of written notice to the Landlord at least 120 days prior to expiration of the lease term. The purchase price for the Facility is $425,000 if the Company acquires the Facility by September 1, 2011, and $440,000 if the Company acquires the Facility by September 1, 2012.

In October 2010, the Company entered into an agreement of lease for the lease of 8,000 square feet located at 2 Country Club Road, Queensbury, NY for a two year period with an option to extend the lease for an additional two years. The location houses a portion of the Company's research and manufacturing operations. The term of the lease commenced on November 12, 2010. The lease provides for annual base rent of $96,000, as well as the payment of customary building operating expenses and real estate taxes.

In April 2011, the Company entered into an agreement of lease for the lease of 3,000 square feet located at 97-95 Park Road, Queensbury, NY for a one year period with an option to extend the lease for an additional year. The location houses a portion of the Company's warehouse, manufacturing and office space. The term of the lease commenced on May 6, 2011. The lease provides for annual base rent of $24,000, as well as the payment of customary building operating expenses and real estate taxes. In July 2011, the Company entered into an amendment to the lease agreement for 97-95 Park Road, agreeing to lease the remaining 3,000 square feet at that location. The term of this amendment began on July 18, 2012 and is effective for a one year period with an option to extend the lease for an additional year. In addition, this amendment extends the term of the original lease to July 18, 2013. The amendment provides for total annual base rent of $42,000.

In August 2011, Delcath Systems Limited entered into an agreement of lease for an office and manufacturing facility located in the city of Galway, Ireland. This facility is approximately 19,200 square feet and is intended to be the location of Delcath's European headquarters. The Lease is for a term of ten years, commencing August 2, 2011; although Delcath Limited has the option to terminate the Lease after the fifth year upon not less than six months notice. The Lease provides for fixed annual lease amounts payable in advance in equal quarterly installments. The annual lease amounts, which escalate annually, are as follows: Year 1 – €106,051, Year 2 – €134,974, Year 3 – €159,077 and Years 4 and 5 – €183,179. Annual lease amounts in years 6 through 10 are subject to adjustment based upon the percentage increase in the consumer price index as published by the Ireland Central Statistics Office. Delcath Limited is also required to pay for customary building operating expenses. Delcath Limited's payment obligations and performance of the Lease are guaranteed by Delcath.

Future minimum lease payments under all operating leases at December 31, 2011 are as follows (in thousands):

Year Ended December 31:
2012	$	1,258
2013		1,158
2014		1,215
2015		1,233
2016		1,273
	$	6,137

Rent expense totaled approximately $1.2 million, $0.5 million and $0.2 million, for the years ended December 31, 2011, 2010, and 2009, respectively.

Cooperative Research and Development Agreement

The principal goal of the Delcath's Cooperative Research and Development Agreement (CRADA) with the NCI is to continue the development of a novel form of regional cancer therapy by designing clinical protocols utilizing the Delcath chemosaturation system to regionally deliver chemotherapeutics to patients with unresectable malignancies confined to an organ or region of the body. Under the terms of the agreement, Delcath will pay $1.0 million in 2012 to the NCI for clinical support. These funds are payable in quarterly amounts of $250,000 and will be used for material support of the CRADA (including equipment, supplies, travel, and other related CRADA support), as well as for support of existing or new scientific or clinical staff to be hired by NCI who are to perform work under the CRADA. The Company incurred $1.0 million per year in expenses related to this agreement for each of the years ended December 31, 2011, 2010 and 2009.

Letters of Credit

Under the terms of the lease agreement for office space in New York City, the Company is required to maintain a letter of credit in the amount of $881,297. The letter of credit expires on February 1, 2013 if not renewed by the Company.

Assets and Liabilities Measured at Fair Value

12 Months Ended

Dec. 31, 2011

Assets and Liabilities Measured at Fair Value [Abstract]

Assets and Liabilities Measured at Fair Value

(6)	Assets and Liabilities Measured at Fair Value

Derivative Financial Instruments

As disclosed in Note 3, the Company allocated proceeds to the warrants issued in connection with a private placement and recent public offering that were classified as liabilities and accounted for as a derivative instrument in accordance with FASB ASC 815. The valuation of the warrants is determined using an option pricing model. This model uses inputs such as the underlying price of the shares issued when the warrant is exercised, volatility, risk free interest rate and expected life of the instrument. The Company has determined that the warrant derivative liability should be classified within Level 3 of the fair-value hierarchy by evaluating each input for the option pricing model against the fair-value hierarchy criteria and using the lowest level of input as the basis for the fair-value classification as called for in FASB ASC 820. There are six inputs: closing price of Delcath stock on the day of evaluation; the exercise price of the warrants; the remaining term of the warrants; the volatility of Delcath's stock over that term; annual rate of dividends; and the riskless rate of return. Of those inputs, the exercise price of the warrants and the remaining term are readily observable in the warrant agreements. The annual rate of dividends is based on the Company's historical practice of not granting dividends. The closing price of Delcath stock would fall under Level 1 of the fair-value hierarchy as it is a quoted price in an active market (820-10). The riskless rate of return is a Level 2 input as defined in 820-10, while the historical volatility is a Level 3 input as defined in FASB ASC 820. Since the lowest level input is a Level 3, Delcath determined the warrant derivative liability is most appropriately classified within Level 3 of the fair value hierarchy.

Money Market Funds and Treasury Bills

Cash and cash equivalents includes a money market account valued at approximately $25.4 million. The fair market value of certificates of deposit at December 31, 2011 was $4.97 million.

The Company has determined that the inputs associated with the fair value determination are based on quoted prices (unadjusted) and as a result the investments are classified within Level 1 of the fair value hierarchy.

The table below presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 and 2010, aggregated by the level in the fair value hierarchy within which those measurements fall.

Assets and Liabilities Measured at Fair Value on a Recurring Basis
(in thousands)	Level 1				Level 2				Level 3				Balance at December 31,
	2011		2010		2011		2010		2011		2010		2011		2010
Assets
Money market funds	$	25,417	$	45,407		-		-		-		-	$	25,417	$	45,407
Marketable equity securities		-		20		-		-		-		-		-		20
Liabilities
Derivative instrument liabilities		-		-		-		-	$	2,439	$	18,005	$	2,439	$	18,005

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)	Derivative
Balance at January 1, 2010	$	11,207
Total increase in the liability included in earnings		15,951
Total liability reclassified to additional paid in capital upon exercise of warrants		(9,153	)
Balance at December 31, 2010	$	18,005
Total decrease in the liability included in earnings		(15,566	)
Balance at December 31, 2011	$	2,439

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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+ Details

Accrued Liabilities

12 Months Ended

Dec. 31, 2011

Payables and Accruals [Abstract]

Accrued Liabilities

(7)	Accrued Liabilities

Accrued liabilities includes the following:

(in thousands)	December 31, 2011		December 31, 2010
Compensation, excluding taxes	$	1,688		-
Contract Research Organization		1,800		-
Other1		1,985		2,582
Total accrued liabilities	$	5,473	$	2,582

1 Other consists of various accrued expenses, with no individual item accounting for more than 5% of current liabilities at December 31, 2011 and 2010.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Data (Unaudited)

(8)	Quarterly Financial Data (Unaudited)

Set forth below is selected quarterly financial data for each of the quarters in the years ended December 31, 2011 and 2010.

	2011 Quarters Ended
(in thousands except per share amounts)	March 31			June 30			September 30			December 31
Operating loss	$	(7,814	)	$	(10,486	)	$	(12,181	)	$	(15,974	)
Derivative instrument income		5,966			5,027			3,872			702
Net loss		(1,848	)		(5,459	)		(8,309	)		(15,268	)
Basic and diluted loss per share		(0.04	)		(0.13	)		(0.18	)		(0.32	)

	2010 Quarters Ended
(in thousands except per share amounts)	March 31			June 30			September 30			December 31
Operating loss	$	(5,487	)	$	(8,305	)	$	(7,421	)	$	(9,529	)
Derivative instrument (expense) income		(8,688	)		635			(2,112	)		(5,787	)
Net loss		(14,174	)		(7,668	)		(9,530	)		(15,312	)
Basic and diluted loss per share		(0.39	)		(0.21	)		(0.24	)		(0.36	)

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Subsequent Events

12 Months Ended

Dec. 31, 2011

Subsequent Events [Abstract]

Subsequent Events

(9)	Subsequent Events

On December 29, 2011, we entered into a sales agreement (the “Sales Agreement”) with Cowen and Company, LLC to sell shares of the Company's common stock, par value $.01 per share, having aggregate sales proceeds of $39.75 million, from time to time, through an “at the market” equity offering program under which Cowen and Company, LLC will act as sales agent. During the first quarter through March 5, 2012, we sold approximately 0.5 million shares of our common stock through the program for net proceeds of approximately $2.0 million. The net proceeds were used for general corporate purposes, including, but not limited to, commercialization of our products, obtaining regulatory approvals, funding of our clinical trials, capital expenditures and working capital. We have approximately $37.7 million available under the program.

Delcath completed an evaluation of the impact of any subsequent events through the date financial statements were issued and determined there were no other subsequent events requiring disclosure in or adjustment to these financial statements.