View Filing Data

Preferred stock dividends

Net (loss) income

$ (7,519)

$ (5,959)

$ (7,894)

$ (8,880)

$ (6,658)

$ 7,185

$ (21,371)

$ (8,353)

$ (19,222)

$ (45,117)

(18,238)

(527)

Net loss - diluted

$ (25,757)

$ (8,893)

$ (39,609)

$ (8,887)

$ (19,222)

$ (45,644)

Weighted average number of basic shares outstanding

26,112

^[1]

51,229

^[1]

23,095

^[1]

19,841

^[1]

38,151

Weighted average number of diluted shares outstanding

26,112

^[1]

51,229

^[1]

23,095

^[1]

19,841

^[1]

38,151

Basic (loss) income per common share

$ (287.00)

^[1]

$ (175.00)

^[1]

$ (924.00)

^[1]

$ (420.00)

^[1]

$ (504.00)

$ (2,275,000)

Diluted loss per common share

$ (987.00)

^[1]

$ (175.00)

^[1]

$ (1,715.00)

^[1]

$ (448.00)

^[1]

$ (504.00)

$ (2,275,000)

[1]	reflects a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018 and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Basis Of Condensed Consolidated Financial Statement Presentation [Abstract]

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 351	$ 358	$ 298
Work-in-process	350	500	721
Finished goods	35		229
Total inventories	$ 736	$ 858	$ 1,248

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

(7)

LEASES

The Company recognizes right-of-use (“ROU”) assets and lease liabilities when it obtains the right to control an asset under a leasing arrangement with an initial term greater than twelve months. The Company leases its facilities under non-cancellable operating and financing leases.

The Company evaluates the nature of each lease at the inception of an arrangement to determine whether it is an operating or financing lease and recognizes the ROU asset and lease liabilities based on the present value of future minimum lease payments over the expected lease term. The Company’s leases do not generally contain an implicit interest rate and therefore the Company uses the incremental borrowing rate it would expect to pay to borrow on a similar collateralized basis over a similar term in order to determine the present value of its lease payments.

The following table summarizes the Company’s operating and financing leases as of and for the nine months ended September 30, 2019:


*(in thousands)*	U.S.			Ireland			Total
Lease cost
Operating lease cost	$	592		$	160		$	752
Financing lease cost		32			—			32
Sublease income		(215	)		(133	)		(348	)

Total	$	409		$	27			436

Other information
Operating cash flows out from operating leases		(634	)		(160	)		(794	)
Operating cash flows in from operating leases		215			133			348
Operating cash flows from financing leases		(35	)		—			(35	)
Right-of-use assets exchanged for new operating lease liabilities		874			—			874
Weighted average remaining lease term		1.4			1.8
Weighted average discount rate—operating leases		8	%		8	%

Maturities of the Company’s operating leases, excluding short-term leases, are as follows:


*(in thousands)*	U.S.			Ireland			Total
Nine months ended December 31, 2019	$	129		$	51		$	180
Year ended December 31, 2020		498			203			701
Year ended December 31, 2021		79			119			198

Total		706			373			1,079
Less present value discount		(40	)		(27	)		(67	)

Operating lease liabilities included in the condensed consolidated balance sheets at September 30, 2019	$	666		$	346		$	1,012

Stockholders' Equity - Summary of Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Stockholders Equity Note [Abstract]
Number of Shares, Granted \| shares	1,782
Number of Shares, Cancelled/Forfeited \| shares	(142)
Number of Shares, Outstanding \| shares	1,640
Number of Shares, Exercisable \| shares	1,095
Weighted Average Exercise Price, Granted \| $ / shares	$ 196.70
Weighted Average Exercise Price, Cancelled/Forfeited \| $ / shares	196.70
Weighted Average Exercise Price, Outstanding \| $ / shares	196.70
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 196.70
Weighted Average Remaining Contractual Term (Years), Outstanding	9 years 4 months 24 days
Weighted Average Remaining Contractual Term (Years), Exercisable	9 years 4 months 24 days

Restructuring Expenses - Schedule of Restructuring and Related Costs (Details) - Lease Liability [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Restructuring Cost And Reserve [Line Items]
Restructuring reserve balance	$ 604
Payments/Utilizations	(208)
Restructuring reserve balance	$ 396

Stockholders' Equity - September 2018 Rights Offering - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended
	Sep. 30, 2018	Feb. 28, 2018
Stockholders Equity Note [Abstract]
Sale of common stock, net of expenses (in shares)	6,669	606
Net proceeds from issuance of common stock	$ 7.0

Restricted Cash - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Restricted Cash [Abstract]
Cash and cash equivalents	$ 15,334	$ 2,516		$ 3,999
Convertible Notes				238
Letters of credit	131	1,012		1,012
Security for credit cards	50	50		75
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$ 15,515	$ 3,578	$ 9,975	$ 5,324	$ 31,696

Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Property Plant And Equipment [Abstract]
Depreciation expense	$ 100	$ 100	$ 168	$ 342	$ 444	$ 310

Fair Value Measurements - Additional Information (Details) - shares	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Class Of Warrant Or Right [Line Items]
Number of warrants outstanding (in shares)	1,002,024	93,835	20	1
Febuary 2018 Warrants [Member]
Class Of Warrant Or Right [Line Items]
Number of warrants outstanding (in shares)	125,000

Basis of Consolidated Financial Statement Presentation

12 Months Ended

Dec. 31, 2018

Basis of Consolidated Financial Statement Presentation

(2)

BASIS OF CONSOLIDATED FINANCIAL STATEMENT PRESENTATION

The accounting and financial reporting policies of the Company conform to generally accepted accounting principles 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.

Reverse Stock Splits

All share numbers presented in this footnote reflect a one-for-three hundred and fifty (1:350) reverse stock split effected on November 6, 2017, a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018, and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

Derivative Financial Instruments (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of fair value of the outstanding warrants

The fair value of the outstanding warrants at September 30, 2019 and December 31, 2018 was determined by using option pricing models with the following assumptions:


	September 30, 2019			December 31, 2018
Expected life (in years)		5.0		1.1 - 5.1
Expected volatility		201.8	%	145.7% - 265.3%
Risk-free interest rates		1.6	%	2.5% - 2.6%

The fair value of the Warrants at December 31, 2018 was determined by using option pricing models assuming the following:


	December 31, 2018	December 31, 2017
Expected life (in years)	1.13 - 5.11	0.82 - 4.88
Expected volatility	145.7% - 265.3%	130.9% - 266.9%
Risk-free interest rates	2.5% - 2.6%	1.7% - 2.1%

Assets and liabilities measured at fair value on a recurring basis

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall in accordance with ASC 820.


	Assets and Liabilities Measured at Fair Value on a Recurring Basis
(in thousands)	Level 1				Level 2				Level 3				Total
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Liabilities
Derivative instrument liabilities	$	—	$	—	$	—	$	—	$	20,410	$	33	$	20,410	$	33

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017, 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


	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	Level 1				Level 2				Level 3				Balance at December 31,
(in thousands)	2018		2017		2018		2017		2018		2017		2018		2017
Liabilities
Derivative instrument liabilities	$	—	$	—	$	—	$	—	$	33	$	560	$	33	$	560

Fair value measurements using significant unobservable inputs

The table below presents the activity within Level 3 of the fair value hierarchy for the nine months ended September 30, 2019:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)


(in thousands)	Warrant Liability
Balance at December 31, 2018	$	33
Total change in the liability included in earnings		(456	)
Reclass from liability to equity		(11	)
Fair value of warrants issued		20,844

Balance at September 30, 2019	$	20,410

The table below presents the activity within Level 3 of the fair value hierarchy for the twelve months ended December 31, 2018:

Fair Value Measurements Using Significant Unobservable

Inputs (Level 3)


(in thousands)	Warrant Liability
Balance at January 1, 2017	$	18,751
Total change in the liability included in earnings		(15,103	)
Extinguishment of convertible note warrant		(17,489	)
Fair value of warrants issued		16,953
Fair value of warrants exercised		(2,552	)

Balance at December 31, 2017		560

Fair value of warrants issued		23,533
Total change in the liability included in earnings		(19,706	)
Reclass from liability to equity		(4,210	)
Fair value of warrants exchanged		(144	)

Balance at December 31, 2018	$	33

Stockholders' Equity - Summary of Weighted Average Assumptions Used to Compute Fair Value (Details) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2019 $ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	147.60%
Weighted average risk-free interest rate	2.60%
Weighted average expected life (in years)	5 years 6 months
Weighted average grant date fair value	$ 0.259

Description of Business

12 Months Ended

Dec. 31, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business

(1)

DESCRIPTION OF BUSINESS

Delcath Systems, Inc. is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. Our investigational product, “Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System” (“Melphalan/HDS”), is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects.

Our primary research focus is on ocular melanoma liver metastases (“mOM”) and intrahepatic cholangiocarcinoma (“ICC”) and certain other cancers that are metastatic to the liver. Currently there are few effective treatment options for certain cancers in the liver. Traditional treatment options include surgery, systemic chemotherapy, liver transplant, radiation therapy, interventional radiology techniques, and isolated hepatic perfusion. We believe that Melphalan/HDS and CHEMOSAT represent a potentially important advancement in regional therapy for primary liver cancer and certain other cancers metastatic to the liver and are uniquely positioned to treat the entire liver either as a standalone therapy or as a complement to other therapies.

Our clinical development program for Melphalan/HDS is comprised of the FOCUS Clinical Trial for Patients with Hepatic Dominant Ocular Melanoma (the “FOCUS Trial”), a global registration clinical trial that is investigating objective response rate in mOM, and the ALIGN Trial, a global Phase 3 clinical trial for ICC (the “ALIGN Trial”). Our product also includes a registry for CHEMOSAT commercial cases performed in Europe and sponsorship of select Investigator Initiated Trials.

While we currently utilize third parties to manufacture some components of our product, we also have our own manufacturing operations for certain components of our product and assemble and package our products in Queensbury, New York. See the discussion in Part 1, Item 1 under the caption “Manufacturing and Quality Assurance” above.

We commercialize our product in Europe through alliances with third parties.

Liquidity

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying financial statements during the year ended December 31, 2018, the Company incurred net losses of $19.2 million and used $14.7 million of cash for its operating activities. These factors among others raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

The Company’s existence is dependent upon management’s ability to obtain additional funding sources or to enter into strategic alliances. Adequate additional financing may not be available to us on acceptable terms, or at all. If the Company is unable to raise additional capital and/or enter into strategic alliances when needed or on attractive terms, it would be forced to delay, reduce or eliminate our research and development programs or any commercialization efforts. There can be no assurance that the Company’s efforts will result in the resolution of the Company’s liquidity needs. If Delcath is not able to continue as a going concern, it is likely that holders of its Common Stock will lose all of their investment. The accompanying consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales. At December 31, 2018, management believed that its capital resources were adequate to fund operations through March 2019. Additional working capital will be required to continue operations.

Operations of the Company are subject to certain risks and uncertainties, including, among others, uncertainty of product development and clinical trial results; 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. See Note 15 of these notes to the Company’s audited consolidated financial statements relating to subsequent events.

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Prepaid Expense And Other Assets Current [Abstract]
Clinical trial expenses	$ 500
Financing costs			$ 70
Insurance premiums	54	$ 140	421
Security deposit	50	51	50
Income tax and VAT receivable	33	579	29
Other	227	128	130
Total prepaid expenses and other current assets	$ 864	$ 898	$ 700

Accrued Expenses - Schedule of Accrued Expenses (Parenthetical) (Details)	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Payables And Accruals [Abstract]
Maximum percentage of current liabilities accrued (in hundredths)	5.00%	5.00%	5.00%

Derivative Financial Instruments - Schedule of Fair Value of Warrants (Details)	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Contractual Term [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants expiration period	5 years
Expected Volatility [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input	2.018
Risk-free Interest Rates [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input	0.016
Minimum [Member] \| Contractual Term [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants expiration period		1 year 1 month 6 days	9 months 25 days
Minimum [Member] \| Contractual Term [Member] \| Scenario, Previously Reported [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants expiration period		1 year 1 month 17 days
Minimum [Member] \| Expected Volatility [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input		1.457	1.309
Minimum [Member] \| Risk-free Interest Rates [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input		0.025	0.017
Maximum [Member] \| Contractual Term [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants expiration period		5 years 1 month 6 days	4 years 10 months 17 days
Maximum [Member] \| Contractual Term [Member] \| Scenario, Previously Reported [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants expiration period		5 years 1 month 9 days
Maximum [Member] \| Expected Volatility [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input		2.653	2.669
Maximum [Member] \| Risk-free Interest Rates [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input		0.026	0.021

Leases - Additional Information (Details)	Sep. 30, 2019
Leases [Abstract]
Lease term	12 months

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes consists of:


	Year Ended December 31,
(in thousands)	2018			2017
Domestic	$	(12,961	)	$	(41,313	)
Foreign		(6,261	)		(3,804	)

Income (loss) before taxes	$	(19,222	)	$	(45,117	)

Income tax reconciliation

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


	Year Ended December 31,
(in thousands)	2018			2017
Income taxes using U.S federal statutory rate	$	(4,037	)	$	(15,340	)
Tax Cuts and Jobs Act		—			143
Nondeductible interest		2,273			6,912
Loss on extinguishment of debt		236			10,174
Loss of tax benefit of federal net operating loss carryforwards		(588	)		5,067
Loss of tax benefit of state net operating loss carryforwards		1,040			1,373
Loss of tax benefit of federal tax credit carryforwards		495			324
Amortization of gain on IP migration		—			767
State income taxes, net of federal benefit		(2,355	)		(1,339	)
Foreign rate differential		1,166			1,196
Valuation allowance		6,323			(1,423	)
Derivative charge		(4,138	)		(8,403	)
Stock option exercises and cancellations		215			841
Research and development costs		(636	)		(295	)
Other		6			3

	$	—		$	—

Significant components of deferred tax assets

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


	Year Ended December 31,
(in thousands)	2018		2017
Deferred tax assets:
Employee compensation accruals	$	—	$	292
Accrued liabilities		519		353
Research tax credits		161		17
Other		60		34
Net operating losses		10,624		5,289

Total deferred tax assets		11,364		5,985

Deferred tax liabilities:
Beneficial conversion feature		—		—
Other		—		13

Total deferred tax liabilities				13

Valuation allowance		11,364		5,972

Net deferred tax assets	$	—	$	—

Summary of Change in Valuation Allowance

The change in valuation allowance is as follows:


(in thousands)	December 31, 2018			December 31, 2017
Beginning balance	$	5,972		$	7,094
Charged to costs and expenses		6,323			(1,423	)
Charged to additional paid-in capital		—			—
Charged to retained earnings		(834	)		—
Charged to other comprehensive income		(97	)		301

Ending balance	$	11,364		$	5,972

Stockholders' Equity - Common Stock Issuances - Additional Information (Details)	9 Months Ended
	Sep. 30, 2019 shares
Pre-Funded Series D Warrants [Member]
Stockholders Equity Note [Line Items]
Exercise of pre-funded Series D Warrants (in shares)	11,285

Net Loss per Common Share - Calculation of Net Loss and Number of Shares Used to Compute Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

Dec. 31, 2017

Earnings Per Share [Abstract]

Net (loss) income - basic

$ (7,519)

$ (5,959)

$ (7,894)

$ (8,880)

$ (6,658)

$ 7,185

$ (21,371)

$ (8,353)

$ (19,222)

$ (45,117)

Preferred stock dividends

(18,238)

(527)

Adjustment for gain on warrant income

(13)

(534)

Net loss - diluted

$ (25,757)

$ (8,893)

$ (39,609)

$ (8,887)

$ (19,222)

$ (45,644)

Weighted average shares outstanding - basic

26,112

^[1]

51,229

^[1]

23,095

^[1]

19,841

^[1]

38,151

Weighted average shares outstanding - diluted

26,112

^[1]

51,229

^[1]

23,095

^[1]

19,841

^[1]

38,151

Net loss per share - basic

$ (287.00)

^[1]

$ (175.00)

^[1]

$ (924.00)

^[1]

$ (420.00)

^[1]

$ (504.00)

$ (2,275,000)

Net loss per share - diluted

$ (987.00)

^[1]

$ (175.00)

^[1]

$ (1,715.00)

^[1]

$ (448.00)

^[1]

$ (504.00)

$ (2,275,000)

[1]	reflects a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018 and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Percentage of valuation allowance against deferred tax assets	100.00%
Decrease in deferred tax assets valuation allowance	$ 5,400,000	$ 1,100,000
U.S. corporate income tax rate	21.00%	34.00%
Provisional income tax due to reduction in deferred tax assets		$ 143,500
New York State [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards net, expected to expire unutilized and unavailable to offset future federal taxable income	$ 157,200,000
New York City [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards net, expected to expire unutilized and unavailable to offset future federal taxable income	$ 141,500,000
Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Open tax period	Dec. 31, 1998
Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Open tax period	Dec. 31, 2018
Federal [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 230,000,000	211,300,000
Operating loss carryforwards, annual limitation	27,500
Operating loss carryforwards net, expected to expire unutilized and unavailable to offset future federal taxable income	208,100,000
Operating loss carryforwards available for offset future taxable income	21,900,000
Operating loss carryforwards for unlimited period	20,200,000
Federal [Member] \| Expire Between 2019 and 2037 [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards available for offset future taxable income	$ 1,700,000
Federal [Member] \| Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration dates	2019
Federal [Member] \| Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, expiration dates	2037
Federal [Member] \| Research and Development Tax Credit Carryforwards [Member]
Operating Loss Carryforwards [Line Items]
Tax credit carryforwards	$ 5,000,000	4,300,000
Tax credit carryforwards, expiration dates	2038
Tax credit carryforwards expected to expire unutilized	$ 200,000
State and City [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 10,100,000	10,100,000
Operating loss carryforwards, expiration dates	2038
Foreign [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 25,200,000	25,000,000
Federal and State [Member] \| Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Open tax period	Dec. 31, 2015
Federal and State [Member] \| Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Open tax period	Dec. 31, 2018
Minimum [Member] \| State and City [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 27,300,000	$ 27,300,000
Maximum [Member]
Operating Loss Carryforwards [Line Items]
U.S. corporate income tax rate		35.00%
Maximum [Member] \| State and City [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 167,300,000	$ 150,300,000

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

(10)

FAIR VALUE MEASUREMENTS

The table below presents the activity within Level 3 of the fair value hierarchy for the nine months ended September 30, 2019:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)


(in thousands)	Warrant Liability
Balance at December 31, 2018	$	33
Total change in the liability included in earnings		(456	)
Reclass from liability to equity		(11	)
Fair value of warrants issued		20,844

Balance at September 30, 2019	$	20,410

At September 30, 2019, the Company had a total of 125,000 February 2018 Warrants outstanding. As discussed in Part II—Item 1 “Legal Proceedings” and in Note 12 to the Company’s condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q, the February 2018 Warrants were surrendered pursuant to a settlement agreement entered into between the Company and the remaining holders of the February 2018 Warrants on April 18, 2019 and final payment under the settlement was made on July 16, 2019. The fair value of the outstanding warrants at September 30, 2019 and December 31, 2018 was determined by using option pricing models with the following assumptions:


	September 30, 2019			December 31, 2018
Expected life (in years)		5.0		1.1 - 5.1
Expected volatility		201.8	%	145.7% - 265.3%
Risk-free interest rates		1.6	%	2.5% - 2.6%


	Assets and Liabilities Measured at Fair Value on a Recurring Basis
(in thousands)	Level 1				Level 2				Level 3				Total
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Liabilities
Derivative instrument liabilities	$	—	$	—	$	—	$	—	$	20,410	$	33	$	20,410	$	33

For the periods ended September 30, 2019 and December 31, 2018, there were no transfers in or out of Level 1, 2 or 3 inputs.

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.

Property Plant And Equipment [Abstract]

Current Accrued Expenses - Schedule of Current Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Clinical trial expenses	$ 2,590	$ 4,530	$ 869
Compensation, excluding taxes	3,274	1,785	1,124
Professional fees		190	221
Short-term portion of lease restructuring		184	209
Other	640	1,247	985
Total accrued expenses	$ 6,537	7,964	$ 3,408
Scenario, Previously Reported [Member]
Other		$ 1,275

Restricted Cash - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Restricted Cash [Abstract]
Cash and cash equivalents	$ 15,334	$ 2,516		$ 3,999
Letters of credit	131	1,012		1,012
Security for credit cards	50	50		75
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$ 15,515	$ 3,578	$ 9,975	$ 5,324	$ 31,696

Stockholders' Equity - Summary of Warrant Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Warrants outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	93,835	20	1
Warrants issued (in shares)	1,001,995		21
Warrants exercised (in shares)	(11,285)	(6,536)	(1)
Exchanged (in shares)	(82,521)
Warrants expired (in shares)		(1)	(1)
Outstanding, end of period (in shares)	1,002,024	93,835	20	1
Warrants, Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 150.67	$ 4,868,205,366	$ 637,218,564
Warrants issued (in dollars per share)	42.00		1,610,000
Exchanged (in dollars per share)	170.31
Warrants exercised (in dollars per share)	7.00	1,252	2,954,000
Warrants expired (in dollars per share)		13,798,400,000	591,675,000
Outstanding, end of period (in dollars per share)	$ 42.00	$ 150.67	$ 4,868,205,366	$ 637,218,564
Weighted average remaining life	5 years 18 days	5 years 9 months	4 years 10 months 17 days	5 years 7 months 2 days
Minimum [Member]
Warrants, Exercise Price per Share [Roll Forward]
Outstanding, (in dollars per share)	$ 7.00	$ 7.00	$ 857,500	$ 197,225,000
Maximum [Member]
Warrants, Exercise Price per Share [Roll Forward]
Outstanding, (in dollars per share)	$ 42.00	$ 7,000	$ 13,798,400,000	$ 13,798,400,000
February 2018 Warrants [Member]
Warrants outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	273
Warrants issued (in shares)		1,538
Outstanding, end of period (in shares)		273
Warrants, Exercise Price per Share [Roll Forward]
Outstanding, (in dollars per share)		$ 7,000
Warrants, Weighted Average Exercise Price [Roll Forward]
Warrants issued (in dollars per share)		$ 6,531
Convertible Notes [Member]
Warrants outstanding [Roll Forward]
Warrants issued (in shares)		98,814
Warrants, Weighted Average Exercise Price [Roll Forward]
Warrants issued (in dollars per share)		$ 126

Property, Plant, and Equipment

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Property, Plant, and Equipment

(5)

PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment consist of the following:


(in thousands)	September 30, 2019			December 31, 2018			Estimated Useful Life
Buildings and land	$	589		$	589			30 years - Buildings
Enterprise hardware and software		1,739			1,742			3 years
Leaseholds		1,687			1,701			Lesser of lease term or estimated useful life
Equipment		1,002			1,002			7 years
Furniture		197			198			5 years

Property, plant and equipment, gross		5,214			5,232
Accumulated depreciation		(4,458	)		(4,307	)

Property, plant and equipment, net	$	756		$	925

Depreciation expense for the three and nine months ended September 30, 2019 was approximately $0.1 million and $0.2 million, respectively as compared to approximately $0.1 million and $0.3 million, respectively, for the same periods in 2018.

(7)

PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment consists of:


(in thousands)	December 31, 2018			December 31, 2017			Estimated Useful Life
Buildings and land	$	589		$	579			30 years-Buildings
Enterprise hardware and software		1,742			1,744			3 years
Leaseholds		1,701			1,705			Lesser of lease term or estimated useful life
Equipment		1,002			971			7 years
Furniture		198			175			5 years

Property, plant and equipment, gross		5,232			5,174
Accumulated depreciation		(4,307	)		(3,876	)

Property, plant and equipment, net	$	925		$	1,298

Depreciation expense for the years ended December 31, 2018 and 2017 was $0.4 million, $0.3 million, respectively.

Convertible Notes Payable - Summary of Notes by Maturity Dates (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Principal		$ 4.5
Unamortized discount		(2.5)
Carrying value		$ 2.0
December 4, 2018 [Member]
Debt Instrument [Line Items]
Maturity date	Dec. 04, 2018	Dec. 04, 2018
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 1.7
Carrying value		$ 1.7
March 1, 2019 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 01, 2019	Mar. 01, 2019
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.6
Unamortized discount		(0.5)
Carrying value		$ 0.1
March 21, 2019 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 21, 2019	Mar. 21, 2019
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.4
Unamortized discount		(0.2)
Carrying value		$ 0.2
December 4, 2019 [Member]
Debt Instrument [Line Items]
Maturity date	Dec. 04, 2019	Dec. 04, 2019
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.9
Unamortized discount		$ (0.9)
March 1, 2020 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 01, 2020	Mar. 01, 2020
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.8
Unamortized discount		$ (0.8)
March 21, 2020 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 21, 2020	Mar. 21, 2020
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.1
Unamortized discount		$ (0.1)

Summary of Significant Accounting Policies - Shares Excluded from the Computation of Diluted Earnings per Share (Details) - shares	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,037,316	15,491	9,957	21
Common Stock Warrants - Equity [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		6,005	6,005	21
Common Stock Warrants - Liability [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,001,963	1,429	271
Assumed Conversion of Convertible Notes [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	31,747	8,057	3,681

Commitment and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

(13)

COMMITMENT AND CONTINGENCIES

On May 9, 2018, the Company received a Demand Letter from a vendor for an outstanding balance owed at that time of $2.1 million. The Company has worked with the vendor since that time to establish a payment plan for the balance owed.

Stockholders' Equity - December 2018 Warrant Exchange - Additional Information (Details) - shares	1 Months Ended
	Apr. 30, 2019	Dec. 31, 2018
Exchange Agreement [Member]
Stockholders Equity Note [Line Items]
Shares of common stock issued to investors	92	1,179

Accrued Expenses

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Payables And Accruals [Abstract]

Accrued Expenses

(6)

ACCRUED EXPENSES

Accrued expenses consist of the following:


(in thousands)	September 30, 2019		December 31, 2018
Compensation, excluding taxes	$	3,274	$	1,785
Clinical trial expenses		2,590		4,530
Interest payable		33		402
Other¹		640		1,247

Total accrued expenses	$	6,537	$	7,964

Other consists of various accrued expenses, with no individual item accounting for more than 5% of current liabilities at September 30, 2019 and December 31, 2018.

(8)

CURRENT ACCRUED EXPENSES

Current accrued expenses include the following:


(in thousands)	December 31, 2018		December 31, 2017
Clinical trial expenses	$	4,530	$	869
Compensation, excluding taxes		1,785		1,124
Professional fees		190		221
Short-term portion of lease restructuring		184		209
Other1		1,275		985

Total accrued expenses	$	7,964	$	3,408

Other consists of various accrued expenses, with no individual item accounting for more than 5% of current liabilities at December 31, 2018 and 2017.

Basis of Consolidated Financial Statement Presentation - Additional Information (Details) - Common Stock [Member]	Dec. 24, 2019	Oct. 22, 2019	Sep. 17, 2019	May 02, 2018	Nov. 06, 2017
Stockholders Equity Note [Line Items]
Reverse stock split ratio			0.01	0.002	0.0029
Reverse stock split			1:100	1:500	1:350
Subsequent Event [Member]
Stockholders Equity Note [Line Items]
Reverse stock split ratio	0.0014	0.01
Reverse stock split	1:700	1:100

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Payables And Accruals [Abstract]
Compensation, excluding taxes	$ 3,274	$ 1,785	$ 1,124
Clinical trial expenses	2,590	4,530	869
Interest payable	33	402
Other	640	1,247	985
Total accrued expenses	$ 6,537	$ 7,964	$ 3,408

Fair Value Measurements (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair value measurements using significant unobservable inputs

The table below presents the activity within Level 3 of the fair value hierarchy for the nine months ended September 30, 2019:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)


(in thousands)	Warrant Liability
Balance at December 31, 2018	$	33
Total change in the liability included in earnings		(456	)
Reclass from liability to equity		(11	)
Fair value of warrants issued		20,844

Balance at September 30, 2019	$	20,410

The table below presents the activity within Level 3 of the fair value hierarchy for the twelve months ended December 31, 2018:

Fair Value Measurements Using Significant Unobservable

Inputs (Level 3)


(in thousands)	Warrant Liability
Balance at January 1, 2017	$	18,751
Total change in the liability included in earnings		(15,103	)
Extinguishment of convertible note warrant		(17,489	)
Fair value of warrants issued		16,953
Fair value of warrants exercised		(2,552	)

Balance at December 31, 2017		560

Fair value of warrants issued		23,533
Total change in the liability included in earnings		(19,706	)
Reclass from liability to equity		(4,210	)
Fair value of warrants exchanged		(144	)

Balance at December 31, 2018	$	33

Schedule of fair value of the outstanding warrants

The fair value of the outstanding warrants at September 30, 2019 and December 31, 2018 was determined by using option pricing models with the following assumptions:


	September 30, 2019			December 31, 2018
Expected life (in years)		5.0		1.1 - 5.1
Expected volatility		201.8	%	145.7% - 265.3%
Risk-free interest rates		1.6	%	2.5% - 2.6%

The fair value of the Warrants at December 31, 2018 was determined by using option pricing models assuming the following:


	December 31, 2018	December 31, 2017
Expected life (in years)	1.13 - 5.11	0.82 - 4.88
Expected volatility	145.7% - 265.3%	130.9% - 266.9%
Risk-free interest rates	2.5% - 2.6%	1.7% - 2.1%

Assets and liabilities measured at fair value on a recurring basis


	Assets and Liabilities Measured at Fair Value on a Recurring Basis
(in thousands)	Level 1				Level 2				Level 3				Total
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Liabilities
Derivative instrument liabilities	$	—	$	—	$	—	$	—	$	20,410	$	33	$	20,410	$	33

Assets and Liabilities Measured at Fair Value on a Recurring Basis


	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	Level 1				Level 2				Level 3				Balance at December 31,
(in thousands)	2018		2017		2018		2017		2018		2017		2018		2017
Liabilities
Derivative instrument liabilities	$	—	$	—	$	—	$	—	$	33	$	560	$	33	$	560

Income Taxes - Significant Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Employee compensation accruals		$ 292
Accrued liabilities	$ 519	353
Research tax credits	161	17
Other	60	34
Net operating losses	10,624	5,289
Total deferred tax assets	11,364	5,985
Deferred tax liabilities:
Other		13
Total deferred tax liabilities	0	13
Valuation allowance	11,364	5,972	$ 7,094
Net deferred tax assets	$ 0	$ 0

Property, Plant, and Equipment (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Property Plant And Equipment [Abstract]

Components of property, plant and equipment

Property, plant, and equipment consist of the following:


(in thousands)	September 30, 2019			December 31, 2018			Estimated Useful Life
Buildings and land	$	589		$	589			30 years - Buildings
Enterprise hardware and software		1,739			1,742			3 years
Leaseholds		1,687			1,701			Lesser of lease term or estimated useful life
Equipment		1,002			1,002			7 years
Furniture		197			198			5 years

Property, plant and equipment, gross		5,214			5,232
Accumulated depreciation		(4,458	)		(4,307	)

Property, plant and equipment, net	$	756		$	925

Property, plant, and equipment consists of:


(in thousands)	December 31, 2018			December 31, 2017			Estimated Useful Life
Buildings and land	$	589		$	579			30 years-Buildings
Enterprise hardware and software		1,742			1,744			3 years
Leaseholds		1,701			1,705			Lesser of lease term or estimated useful life
Equipment		1,002			971			7 years
Furniture		198			175			5 years

Property, plant and equipment, gross		5,232			5,174
Accumulated depreciation		(4,307	)		(3,876	)

Property, plant and equipment, net	$	925		$	1,298

Income Taxes - Summary of Change in Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Beginning balance	$ 5,972	$ 7,094
Charged to costs and expenses	6,323	(1,423)
Charged to retained earnings	(834)
Charged to other comprehensive income	(97)	301
Ending balance	$ 11,364	$ 5,972

Restructuring Expenses - Additional Information (Details) $ in Thousands			12 Months Ended
	Aug. 18, 2014 USD ($)	May 22, 2014 USD ($)	Dec. 31, 2018 USD ($) Lease	Dec. 31, 2017 USD ($)
Property Subject to Operating Lease [Member]
Restructuring Cost And Reserve [Line Items]
Number of sub leases \| Lease			2
Restructuring reserve balance			$ 396	$ 604
Sub-lease 1 [Member] \| Facility Closing [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring reserve charges		$ 900
Sub Lease 2 [Member] \| Facility Closing [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring reserve charges	$ 700
Other non-current liabilities [Member] \| Property Subject to Operating Lease [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring reserve balance			200
Accrued Expenses [Member] \| Property Subject to Operating Lease [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring reserve balance			$ 200

Income Taxes - Income tax reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Provision for income taxes [Abstract]
Income taxes using U.S federal statutory rate	$ (4,037)	$ (15,340)
Tax Cuts and Jobs Act		143
Nondeductible interest	2,273	6,912
Loss on extinguishment of debt	236	10,174
Loss of tax benefit of federal net operating loss carryforwards	(588)	5,067
Loss of tax benefit of state net operating loss carryforwards	1,040	1,373
Loss of tax benefit of federal tax credit carryforwards	495	324
Amortization of gain on IP migration		767
State income taxes, net of federal benefit	(2,355)	(1,339)
Foreign rate differential	1,166	1,196
Valuation allowance	6,323	(1,423)
Derivative charge	(4,138)	(8,403)
Stock option exercises and cancellations	215	841
Research and development costs	(636)	(295)
Other	$ 6	$ 3

Commitments - Schedule Future Minimum Lease Payments, Net of Receipts Due Under Terms of Subleases Under All Operating Leases (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Future minimum lease payments under all operating leases [Abstract]
2019	$ 885
2020	916
2021	348
Total future minimum payments due	$ 2,149

Summary of Significant Accounting Policies (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Calculation of net loss and number of shares used to compute basic and diluted earnings per share

Basic net loss per share is determined by dividing net loss by the weighted average shares of common stock outstanding during the period, without consideration of potentially dilutive securities except for those shares that are issuable for little or no cash consideration. Diluted net loss per share is determined by dividing net loss by diluted weighted average shares outstanding. Diluted weighted average shares reflects the dilutive effect, if any, of potentially dilutive common shares, such as stock options and warrants calculated using the treasury stock method. In periods with reported net operating losses, all common stock options and warrants are generally deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal. However, in certain periods in which the exercise price of the warrants was less than the last reported sales price of Delcath’s common stock on the final trading day of the period and there is a gain recorded pursuant to the change in fair value of the warrant derivative liability, the impact of gains related to the mark-to-market adjustment of the warrants outstanding at the end of the period is reversed and the treasury stock method is used to determine diluted earnings per share.


	Three months ended September 30,						Nine months ended September 30,
(in thousands, except share data)	2019			2018			2019			2018
Net (loss) income—basic	$	(7,519	)	$	(8,880	)	$	(21,371	)	$	(8,353	)
Preferred stock dividends		(18,238	)		—			(18,238	)		—
Adjustment for gain on warrant income		—			(13	)		—			(534	)

Net loss—diluted	$	(25,757	)	$	(8,893	)	$	(39,609	)	$	(8,887	)
Weighted average shares outstanding—basic*		26,112			51,229			23,095			19,841

Weighted average shares outstanding—diluted*		26,112			51,229			23,095			19,841

Net loss per share—basic*	$	(287.00	)	$	(175.00	)	$	(924.00	)	$	(420.00	)
Net loss per share—diluted*	$	(987.00	)	$	(175.00	)	$	(1,715.00	)	$	(448.00	)

reflects a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018 and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

The calculation of net loss and the number of shares used to compute basic and diluted earnings per share for the years ended December 31, 2018 and 2017:


	December 31,
(in thousands, except share data)	2018			2017
Net loss—basic	$	(19,222	)	$	(45,117	)
Preferred stock dividends		—			(527	)

Net loss—diluted	$	(19,222	)	$	(45,644	)

Weighted average shares outstanding—basic		38,151			21

Weighted average shares outstanding—diluted		38,151			21

Net loss per share—basic	$	(504.00	)	$	(2,275,000	)
Net loss per share—diluted	$	(504.00	)	$	(2,275,000	)

Summary of Reconciliation of Weighted Average Shares Outstanding Calculation

The following table provides a reconciliation of the weighted average shares outstanding calculation at December 31, 2018:


	December 31, 2018
Weighted average shares issued		3,913
Weighted average pre-funded warrants		34,238

Weighted average shares outstanding		38,151

Anti-dilutive securities excluded from the computation of earnings per share

The following potentially dilutive securities were excluded from the computation of earnings per share as of September 30, 2019 and 2018 because their effects would be anti-dilutive:


	September 30,
	2019		2018
Stock options		1,643		—
Common stock warrants—equity		—		6,005
Common stock warrants—liability		1,001,963		1,429
Assumed conversion of Series E and E-1 Preferred Stock		1,001,963		—
Assumed conversion of convertible notes		31,747		8,057

Total		2,037,316		15,491

Shares excluded from the computation of diluted earnings per share:


	2018		2017
Common stock warrants—equity		6,005		21
Common stock warrants—liability		271		—
Assumed conversion of convertible notes		3,681		—

Total		9,957		21

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2019
Cover [Abstract]
Entity Registrant Name	DELCATH SYSTEMS, INC.
Entity Central Index Key	0000872912
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1245881
Entity Address, Address Line One	1633 Broadway
Entity Address, Address Line Two	Suite 22C
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10019
City Area Code	212
Local Phone Number	489-2100
Document Type	S-1
Amendment Flag	false

Restricted Cash (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Restricted Cash [Abstract]

Schedule of Cash, Cash Equivalents, and Restricted Cash

Cash, cash equivalents, and restricted cash balances were as follows:


(in thousands)	September 30, 2019		December 31, 2018
Cash and cash equivalents	$	15,334	$	2,516
Letters of credit		131		1,012
Security for credit cards		50		50

Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$	15,515	$	3,578


(in thousands)	December 31, 2018		December 31, 2017
Cash and cash equivalents	$	2,516	$	3,999
Convertible Notes		—		238
Letters of credit		1,012		1,012
Security for credit cards		50		75

Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	3,578	$	5,324

Taxes

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Taxes

(12)

TAXES

As discussed in Note 14 Income Taxes to the Consolidated Financial Statements included in the Company’s Annual Report filed for the fiscal year ended December 31, 2018, the Company has a valuation allowance against the full amount of its net deferred tax assets. The Company currently provides a valuation allowance against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. The Company has not recognized any unrecognized tax benefits in its balance sheet.

The Company is subject to income tax in the U.S., as well as various state and international jurisdictions. The federal and state tax authorities can generally reduce a net operating loss (but not create taxable income) for a period outside the statute of limitations in order to determine the correct amount of net operating loss which may be allowed as a deduction against income for a period within the statute of limitations. Additional information regarding the statutes of limitations can be found in Note 14 Income Taxes to the Consolidated Financial Statements included in the Company’s Annual Report filed for the fiscal year ended December 31, 2018.

(14)

INCOME TAXES

Income (loss) before income taxes consists of:


	Year Ended December 31,
(in thousands)	2018			2017
Domestic	$	(12,961	)	$	(41,313	)
Foreign		(6,261	)		(3,804	)

Income (loss) before taxes	$	(19,222	)	$	(45,117	)

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


	Year Ended December 31,
(in thousands)	2018			2017
Income taxes using U.S federal statutory rate	$	(4,037	)	$	(15,340	)
Tax Cuts and Jobs Act		—			143
Nondeductible interest		2,273			6,912
Loss on extinguishment of debt		236			10,174
Loss of tax benefit of federal net operating loss carryforwards		(588	)		5,067
Loss of tax benefit of state net operating loss carryforwards		1,040			1,373
Loss of tax benefit of federal tax credit carryforwards		495			324
Amortization of gain on IP migration		—			767
State income taxes, net of federal benefit		(2,355	)		(1,339	)
Foreign rate differential		1,166			1,196
Valuation allowance		6,323			(1,423	)
Derivative charge		(4,138	)		(8,403	)
Stock option exercises and cancellations		215			841
Research and development costs		(636	)		(295	)
Other		6			3

	$	—		$	—

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


	Year Ended December 31,
(in thousands)	2018		2017
Deferred tax assets:
Employee compensation accruals	$	—	$	292
Accrued liabilities		519		353
Research tax credits		161		17
Other		60		34
Net operating losses		10,624		5,289

Total deferred tax assets		11,364		5,985

Deferred tax liabilities:
Beneficial conversion feature		—		—
Other		—		13

Total deferred tax liabilities				13

Valuation allowance		11,364		5,972

Net deferred tax assets	$	—	$	—

As of December 31, 2018 and 2017 the Company had net operating loss carryforwards for U.S. federal income tax purposes of approximately $230.0 million and $211.3 million respectively. A significant portion of the federal amount is subject to an annual limitation as low as $27,500 as a result of changes in the Company’s ownership in May 2003, November 2016, and multiple dates throughout 2017 and 2018, as defined by Federal Internal Revenue Code Section 382 and the related income tax regulations. As a result of the limitations caused by the May 2003, November 2016 and multiple 2017 and 2018 ownership changes, approximately $208.1 million of the total net operating loss carryforwards is expected to expire unutilized and will be unavailable to offset future federal taxable income. Approximately $21.9 million of net operating loss carryforwards remains available to offset future federal taxable income, of which $1.7 million will expire between 2019 and 2037 and $20.2 million will have an unlimited carryforward period as a result of the Tax Cuts and Jobs Act.

In addition, the Company’s state net operating losses are also subject to annual limitations that generally follow the federal Section 382 provisions (with the exception of Connecticut), adjusted for each state’s respective income apportionment percentages. As of December 31, 2018 and 2017, the Company had net operating loss carryforwards for state and city income tax purposes between approximately $27.3 million and $167.3 million and between approximately $27.3 million and $150.3 million, respectively, which expire through 2038. As a result of the 382 limitations, approximately $157.2 million and $141.5 million of New York State and New York City net operating losses are expected to expire unutilized and will be unavailable to offset future taxable income. Approximately $10.1 million and $10.1 million of net operating loss carryforwards, respectively, will be available to offset future state and city taxable income. As of December 31, 2018 and 2017 the Company had a net operating loss carryforward for foreign income tax purposes of $25.2 million and $25.0 million, respectively, which have indefinite carryforward periods. As of December 31, 2018 and 2017, the Company had federal research and development tax credit carryforwards of approximately $5.0 million and $4.3 million respectively, which expire through 2038. As a result of the section 382 limitations, all but $0.2 million of the tax credit carryforwards is expected to expire unutilized.

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 decreased by approximately $5.4 million and decreased by $1.1 million in 2018 and 2017, respectively. The change in valuation allowance is as follows:


(in thousands)	December 31, 2018			December 31, 2017
Beginning balance	$	5,972		$	7,094
Charged to costs and expenses		6,323			(1,423	)
Charged to additional paid-in capital		—			—
Charged to retained earnings		(834	)		—
Charged to other comprehensive income		(97	)		301

Ending balance	$	11,364		$	5,972

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”). The Act, which is also commonly referred to as “U.S. tax reform”, significantly changes U.S. corporate income tax laws by, among other provisions, reducing the maximum U.S. corporate income tax rate from 35% to 21% starting in 2018. During the year ended December 31, 2017, the Company reduced deferred tax assets by a provisional amount of $143,500, offset by a corresponding reduction to its valuation allowance, as a result of the re-measurement of deferred tax assets and liabilities from its 34% effective rate under existing law to the new lower statutory rate of 21%. The Company finalized its accounting of the effects of tax reform in 2018, which resulted in insignificant adjustments.

The Act also requires a mandatory one-time inclusion of the deferred foreign income of controlled foreign corporations. The one-time transition tax is based on Delcath’s total post-1986 earnings and profits (E&P) for which the Company has previously deferred from U.S. income taxes. During the year ended December 31, 2017, the Company’s reasonable estimate resulted in no provisional amount for the one-time transition tax liability, as the Company’s international subsidiaries are expected to have a cumulative deficit in E&P. As the Company’s international subsidiaries have a cumulative deficit in earnings and profits, the Company did not anticipate being affected by the mandatory inclusion provisions of the Act. The Company finalized its calculation of the total post-1986 foreign E&P (including deficits) for these foreign subsidiaries during 2018 and was not impacted by the mandatory inclusion provisions of the Act.

On December, 22, 2017, Staff Accounting Bulletin 118 was issued due to the complexities involved in accounting for the recently enacted Act. SAB 118 requires the Company to include in its financial statements a reasonable estimate of the impact of the Act on earnings to the extent such estimate has been determined. Accordingly, the U.S. provision for income tax for December 31, 2017 was based on the reasonable estimate guidance provided by SAB 118. The Company finalized the impact from the Act and recorded insignificant adjustments.

The Company complies with the provisions of ASC 740-10, Income Taxes, 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 than 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 and therefore has not included a tabular rollforward of unrecognized tax benefits. As there are no uncertain tax positions recognized, interest and penalties have not been accrued.

The Company is subject to income tax in the U.S., as well as various state and international jurisdictions. The Company has not been audited by any state tax authorities in connection with income taxes. The Company has not been audited by international tax authorities or any states in connection with income taxes. The Company’s New York State tax returns have been subject to annual desk reviews which have resulted in insignificant adjustments to the related franchise tax liabilities and credits. The Company is no longer subject to federal and state examination for tax years ending prior to December 31, 2015; tax years ending December 31, 2015 through December 31, 2018 remain open to examination. The Republic of Ireland is the Company’s only significant foreign jurisdiction. The Company is no longer subject to Ireland tax examination for tax years ending prior to December 31, 2014 (as Ireland has not initiated an audit of 2013 as of December 31, 2018); tax years ending December 31, 2014 through December 31, 2018 remain open to examination. However, the Company’s tax years December 31, 1998 through December 31, 2018 generally remain open to adjustment for all federal, state and foreign tax matters until its net operating loss and tax credit carryforwards are utilized or expire prior to utilization, and the applicable statutes of limitation have expired in the utilization year. The federal and state tax authorities can generally reduce a net operating loss (but not create taxable income) for a period outside the statute of limitations in order to determine the correct amount of net operating loss which may be allowed as a deduction against income for a period within the statute of limitations.

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

Summary of Significant Accounting Policies - Additional Information (Details) shares in Millions	12 Months Ended
	Dec. 31, 2018 Derivative Segment shares	Dec. 31, 2017 Derivative
Summary Of Significant Accounting Policies [Line Items]
Maximum period of investments with original maturities from date of acquisition to be cash equivalents	3 months
Pre-funded penny warrants outstanding \| shares	0.1
Number of business segments \| Segment	1
Designated as Hedges [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of derivative instruments \| Derivative	0	0
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, estimated useful life	3 years
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, plant and equipment, estimated useful life	7 years

Income Taxes - Schedule of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Abstract]
Domestic	$ (12,961)	$ (41,313)
Foreign	(6,261)	(3,804)
Income (loss) before taxes	$ (19,222)	$ (45,117)

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	42,082	101	0
Preferred stock, shares outstanding (in shares)	42,082	101	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	26,112	14,715	377
Common stock, shares outstanding (in shares)	26,112	14,715	376
Treasury stock, at cost (in shares)		0	1

Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical)	Dec. 24, 2019 $ / shares	Oct. 22, 2019 $ / shares	Sep. 17, 2019 $ / shares	May 02, 2018	Nov. 06, 2017	Sep. 30, 2019 $ / shares	Dec. 31, 2018 $ / shares	Dec. 31, 2017 $ / shares
Common stock par value per share			$ 0.01			$ 0.01	$ 0.01	$ 0.01
Preferred stock issued, par value						$ 0.01	$ 0.01	$ 0.01
Common Stock [Member]
Reverse stock split ratio			0.01	0.002	0.0029
Reverse stock split			1:100	1:500	1:350
Subsequent Event [Member]
Common stock par value per share		$ 0.01
Subsequent Event [Member] \| Common Stock [Member]
Common stock par value per share	$ 0.01
Reverse stock split ratio	0.0014	0.01
Reverse stock split	1:700	1:100

Stockholders' Equity (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Stockholders Equity Note [Abstract]

Summary of Stock Option Activity

The following is a summary of stock option activity under the Plan for the nine months ended September 30, 2019:


	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2018		—
Granted		1,782			196.70
Exercised		—
Cancelled/Forfeited		(142	)		196.70

Outstanding at September 30, 2019		1,640		$	196.70		9.4	$	—

Exercisable at September 30, 2019		1,095		$	196.70		9.4	$	—

Summary of Weighted Average Assumptions Used to Compute Fair Value

The following weighted average assumptions were used to compute the fair value of stock options granted during the nine months ended September 30, 2019:


	Nine months ended September 30, 2019
Dividend yield		N/A
Expected volatility		147.6	%
Weighted average risk-free interest rate		2.6	%
Weighted average expected life (in years)		5.5
Weighted average grant date fair value	$	0.259

Summary of Recognized Share-based Compensation Cost


	Three months ended September 30,				Nine months ended September 30,
*(in thousands)*	2019		2018		2019		2018
Selling, general and administrative	$	54	$	116	$	160	$	58
Research and development		16		—		43		(63	)

Total	$	70	$	116	$	203	$	(5	)

Summary of Warrant Activity

The following is a summary of warrant activity for the nine months ended September 30, 2019:


	Warrants			Exercise Price per Share		Weighted Average Exercise Price		Weighted Average Remaining Life (Years)
Outstanding at December 31, 2018		93,835		$	7.00 - $7,000	$	150.67		5.75
Issued		1,001,995					42.00
Exercised		(11,285	)				7.00
Exchanged		(82,521	)				170.31

Outstanding at September 30, 2019		1,002,024		$	7.00 - $42.00	$	42.00		5.05

The Company issued warrants as part of its offerings in 2013, 2015, 2016 and 2018 as well as part of its issuance of convertible notes in 2016 and 2018 and an exchange agreement in 2017. A summary of warrant activity is as follows:


	Warrants			Exercise Price per Share		Weighted Average Exercise Price		Weighted Average Remaining Life (Years)
Outstanding at January 1, 2017		1		$ $	197,225,000 - 13,798,400,000	$	637,218,564		5.59
Warrants issued		21					1,610,000
Warrants exercised		(1	)				2,954,000
Warrants expired		(1	)				591,675,000

Outstanding at December 31, 2017		20		$ $	857,500 - 13,798,400,000	$	1,098,300		4.88
Warrants issued in Feb 2018 registered direct offering		1,538					6,531
Warrants issued with convertible notes		98,814					126
Exercised		(6,536	)				1,252
Expired		(1	)				13,798,400,000

Outstanding at December 31, 2018		93,835		$	7.00 - $7,000	$	150.67		5.75

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies

(3)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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 consolidated balance sheets and the amount of revenues and expenses reported for each of the 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, valuation of inventory, impairment of long-lived assets, income taxes and operating expense accruals. 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.

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.

Restricted Cash

Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded as restricted cash on the accompanying consolidated balance sheets.

Accounts Receivable

Accounts receivable, principally trade, are generally due within 30 days and are stated at amounts due from customers. Collections and payments from customers are monitored and a provision for estimated credit losses may be created based upon historical experience and specific customer collection issues that may be identified.

Inventories

Inventories are valued at the lower of cost or market value using the first-in, first-out method. The reported net value of inventory includes finished saleable products, work-in-process, and raw materials that will be sold or used in future periods. The Company reserves for expired, obsolete, and slow-moving inventory.

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 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. The Company evaluates property, plant and equipment for impairment periodically to determine if changes in circumstances or the occurrence of events suggest the carrying value of the asset or asset group may not be recoverable. Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized.

Derivative Instrument Liability

The Company accounts for derivative instruments in accordance with Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging, 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, 2018 and 2017, the Company did not have any derivative instruments that were designated as hedges.

Fair Value Measurements

The Company adheres to ASC 820, Fair Value Measurement, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. 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.

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, 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.

Revenue Recognition

Revenue is generated from proprietary and partnered product sales and license and royalty arrangements. Revenue is recognized when or as we transfer control of the promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. When obligations or contingencies remain after the products are shipped, such as training and certifying the treatment centers, revenue is deferred until the obligations or contingencies are satisfied.

We may enter into contracts with partners that contain multiple elements such as licensing, development, manufacturing and commercialization components. These arrangements are often complex and we may receive various types of consideration over the life of the arrangement, including: up-front fees, reimbursements for research and development services, milestone payments, payments on product shipments, margin sharing arrangements, license fees and royalties.

Our results of operations for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, Revenue from Contracts with Customers, while prior period amounts, as reported, are not adjusted. The effects of the adoption of the new standard in 2018 were not material to our consolidated financial statements. In assessing our revenue arrangements in accordance with ASC 606, Revenue from Contracts with Customers, we must identify the contract, determine the transaction price including an estimation of any variable consideration we expect to receive in connection with the contract, identify the promises of goods or services to the customer and each distinct performance obligation, allocate the transaction price to each of the performance obligations, and recognize revenue when or as the performance obligations are satisfied. Each of these steps in the revenue recognition process requires management to make judgements and/or estimates. The most significant judgements and estimates involve the determination of variable consideration to be included in the transaction price. Variable consideration is recognized at an amount we believe is not subject to significant reversal and is adjusted at each reporting period if the most likely amount of expected consideration changes or becomes fixed. We believe this provides a reasonable basis for recognizing revenue, however, actual results could differ from estimates and significant changes in estimates could impact our results of operations in future periods.

Deferred Revenue

License fees and milestones received in exchange for the grant of a license for the commercialization of CHEMOSAT are generally recognized over the development period, as the license is considered distinct from the delivery of product. Milestone payments that are contingent upon the occurrence of future events, are evaluated and recorded at the most likely amount, and to the extent that it is probable that a significant reversal will not occur when the associated uncertainty is resolved.

Selling, General and Administrative

Selling, general and administrative costs include personnel costs and related expenses for the Company’s sales, marketing, general management and administrative staff, recruitment, costs related to the Company’s commercialization efforts in Europe, professional service fees, professional license fees, business development and certain general legal activities. All such costs are charged to expense when incurred.

Research and Development

Research and development costs include the costs of materials used for clinical trials and R&D, personnel costs associated with device and pharmaceutical R&D, clinical affairs, medical affairs, medical science liaisons, and regulatory affairs, costs of outside services and applicable indirect costs incurred in the development of the Company’s proprietary drug delivery system. All such costs are charged to expense when incurred.

Stock Based Compensation

The Company accounts for its share-based compensation in accordance with the provisions of ASC 718, Stock-Based Compensation, which establishes accounting for equity instruments exchanged for employee services and ASC 505-50, Equity-Based Payments to Non-Employees, which establishes accounting for equity-based payments to non-employees. Under the provisions of 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 ASC 718. Under the provisions of 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 expenses 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.

Income Taxes

The Company accounts for income taxes following the asset and liability method in accordance with the 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. The Company applies the accounting guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company classifies interest and penalty expense related to uncertain tax positions as a component of income tax expense. 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. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in its assessment of a valuation allowance. See Note 14 for additional information.

Net Loss per Common Share

Basic net loss per share is determined by dividing net loss by the weighted average shares of Common Stock outstanding during the period. Diluted net loss per share is determined by dividing net loss by diluted weighted average shares outstanding. Diluted weighted average shares reflects the dilutive effect, if any, of potentially dilutive common shares, such as stock options and warrants calculated using the treasury stock method. In periods with reported net operating losses, all stock options, unvested restricted stock and warrants are deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal.

The calculation of net loss and the number of shares used to compute basic and diluted earnings per share for the years ended December 31, 2018 and 2017:


	December 31,
(in thousands, except share data)	2018			2017
Net loss—basic	$	(19,222	)	$	(45,117	)
Preferred stock dividends		—			(527	)

Net loss—diluted	$	(19,222	)	$	(45,644	)

Weighted average shares outstanding—basic		38,151			21

Weighted average shares outstanding—diluted		38,151			21

Net loss per share—basic	$	(504.00	)	$	(2,275,000	)
Net loss per share—diluted	$	(504.00	)	$	(2,275,000	)

In the third quarter of 2017, the Company issued Series B Preferred Shares. A portion of the redemption price of the Series B Preferred Shares was accounted for as a deemed dividend.

At December 31, 2018, the Company has 0.1 million pre-funded warrants outstanding. The following table provides a reconciliation of the weighted average shares outstanding calculation at December 31, 2018:


	December 31, 2018
Weighted average shares issued		3,913
Weighted average pre-funded warrants		34,238

Weighted average shares outstanding		38,151

For the years ended December 31, 2018 and 2017 the following potentially dilutive securities were excluded from the computation of diluted earnings per share because their effects would be antidilutive.

Shares excluded from the computation of diluted earnings per share:


	2018		2017
Common stock warrants—equity		6,005		21
Common stock warrants—liability		271		—
Assumed conversion of convertible notes		3,681		—

Total		9,957		21

Segment Information

The Company currently operates in one business segment, which is the development and commercialization of Melphalan/HDS and CHEMOSAT. A single management team that reports to the CEO and President comprehensively manages the business. Accordingly, the Company does not have separately reportable segments.

Foreign Currency and Currency Translation

Transactions that are denominated in a foreign currency are remeasured into the functional currency at the current exchange rate on the date of the transaction. Any foreign currency-denominated monetary assets and liabilities are subsequently remeasured at current exchange rates, with gains or losses recognized as foreign exchange (losses)/gains in the statements of operations.

The assets and liabilities of the Company’s international subsidiaries are translated from their functional currencies into United States dollars at exchange rates prevailing at the balance sheet date. The majority of the foreign subsidiaries revenues and operating expenses are denominated in Euros. The reporting currency for the Company is the United States Dollar (“USD”). Average rates of exchange during the period are used to translate the statement of operations, while historical rates of exchange are used to translate any equity transactions.

Translation adjustments arising on consolidation due to differences between average rates and balance sheet rates, as well as unrealized foreign exchange gains or losses arising from translation of intercompany loans that are of a long-term-investment nature, are recorded in other comprehensive income.

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, that updates the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also amends the required disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for the Company beginning in its fiscal year 2018, and may be applied retrospectively to all prior periods presented or through a cumulative adjustment to the opening retained earnings balance in the year of adoption. The Company has adopted this guidance.

In June 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption was permitted, including interim periods within those fiscal years provided that those electing early adoption must adopt all of the amendments in the same period. The guidance requires application using a retrospective transition method. The Company has adopted this guidance.

In October 2016, the FASB issues ASU 2016-16 which simplifies the income tax consequences of intra-entity transfers other than inventory. Prior to ASU 2016-16, GAAL prohibited the recognition of current and deferred income taxes for intra-entity asset transfers until the asset has been sold to an outside party. ASU 2016-16 eliminates this prohibition for intra-entity transfers of assets other than inventory but retains the prohibition for intra-entity transfers of inventory. This standard is effective go r public entities for fiscal years beginning after December 15, 2017. The Company has adopted this guidance. The adoption did not have a material impact on the Company’s consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption was permitted. The Company adopted this standard.

SEC Disclosure Update and Simplification

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective on November 5, 2018. The adoption did not have a material impact on the Company’s consolidated financial statements.

Recent Accounting Standards to be Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), superseding ASC Topic 840, Leases. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on their balance sheets for all the leases with terms greater than twelve months. Based on certain criteria, leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements that allows entities to apply the provisions of the new standard at the effective date (e.g. January 1, 2019), as opposed to the earliest period presented under the modified retrospective transition approach (January 1, 2017) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company is currently evaluating the effect the guidance will have on our audited consolidated financial statements.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815). This guidance was intended to reduce the complexity associated with the issuer’s accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the Board determined that a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. In addition, the Board re-characterized the indefinite deferral of certain provisions of Topic 480 to a scope exception. The re-characterization has no accounting effect. ASU 2017-11 is effective for public entities for fiscal years beginning after December 15, 2018. The Company intends to adopt this standard on January 1, 2019 and is evaluating the effects, if any, that the adoption of this guidance will have on the Company’s consolidated financial statements.

Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:


(in thousands)	September 30, 2019		December 31, 2018
Clinical trial expenses	$	500	$	—
Insurance premiums		54		140
Security deposit		50		51
Income tax and VAT receivable		33		579
Other¹		227		128

Total prepaid expenses and other current assets	$	864	$	898

Other consists of various prepaid expenses and other current assets, with no individual item accounting for more than 5% of prepaid expenses and other current assets at September 30, 2019 and December 31, 2018.

Prepaid expenses and other current assets include the following:


(in thousands)	December 31, 2018		December 31, 2017
Insurance premiums	$	140	$	421
Financing costs		—		70
Security deposit		51		50
Income tax and VAT receivable		579		29
Other¹		128		130

Total prepaid expenses and other current assets	$	898	$	700

Other consists of various prepaid expenses and other current assets, with no individual item accounting for more than 5% at December 31, 2018 and 2017.

Stockholders' Equity

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Stockholders Equity Note [Abstract]

Stockholders' Equity

(9)

STOCKHOLDERS’ EQUITY

Preferred Stock Issuances

Series E and Series E-1 Preferred Stock

On July 11, 2019, the Company and certain accredited investors entered into a securities purchase agreement pursuant to which the Company sold to investors an aggregate of 20,000 shares of Series E convertible preferred stock, par value $0.01 per share (the “Series E Preferred Stock”), at a price of $1,000 per share and a warrant (a “2019 Warrant”) to purchase a number of shares of common stock of the Company, equal to the number of shares of common stock issuable upon conversion of the Series E Preferred Stock purchased by the investor (the “July 2019 Private Placement”). The Company received gross proceeds from the July 2019 Private Placement of $20.0 million.

On August 19, 2019, the Company and certain accredited investors entered into a securities purchase agreement pursuant to which the Company sold to investors an aggregate of 9,510 shares of Series E-1 convertible preferred stock, par value $0.01 per share (the “Series E-1 Preferred Stock”) at a price of $1,000 per share and a warrant (a “2019 Warrant”) to purchase a number of shares of common stock of the Company equal to the number of shares of common stock issuable upon conversion of the Series E-1 Preferred Stock purchased by the investor (the “August 2019 Private Placement”). The Company received gross proceeds from the August 2019 Private Placement of $9.5 million.

Each share of Series E Preferred Stock and Series E-1 Preferred Stock (collectively, the “Preferred Stock”) is convertible at any time at the option of the holder into the number of shares of Common Stock determined by dividing the stated value by the conversion price of $23.04, subject to certain limitations and adjustments

(the “Conversion Price”). Except for certain adjustments, the holders of the Preferred Stock are entitled to receive dividends on shares of Preferred Stock equal (on an “as converted” basis) to and in the same form as dividends paid on shares of the Common Stock. Any such dividends that are not paid to the holders of the Preferred Stock will increase the stated value. No other dividends will be paid on shares of Preferred Stock. Each Warrant has an exercise price equal to $23.04, subject to adjustment in accordance with the terms of the Warrants (the “Exercise Price”), and are exercisable at any time beginning on the date that the Company effects a reverse stock split until 5:00 p.m. (NYC time) on the date that is five years following the date that the Company effects a reverse stock split.

The Conversion Price and the Exercise Price may, upon each of (i) the third trading day following the date that the Company effects a reverse stock split, (ii) the date that the initial registration statement to be filed pursuant to the Registration Rights Agreement (as further discussed below) is declared effective by the United States Securities and Exchange Commission ( “SEC”), and (iii) in the event that all of the registrable securities (as defined in the Registration Rights Agreement) are not then registered on an effective registration statement, the date that all of the shares underlying the Preferred Stock and Warrants may be sold pursuant to Rule 144, be reduced, and only reduced, to equal the lesser of (x) the then effective Conversion Price or Exercise Price, as applicable, and (y) 90% of the average of the five daily volume weighted average prices of the Common Stock immediately prior to such dates. In the event of a reduction in the Exercise Price, the aggregate number of Warrant Shares shall be increased such that the aggregate Exercise Price of the Warrants on the day immediately following such reduction in the Exercise Price is equal to the aggregate Exercise Price immediately prior to such adjustment. In addition, from the date of issuance of the Preferred Stock and Warrants until such time that the Company’s Common Stock is listed or quoted on a national exchange, the Conversion Price and the Exercise Price are subject to price-based anti-dilution protections.

The Company received net proceeds after expenses of $26.5 million. As discussed further in Note 8, the Company exchanged $11.8 million of debt, interest and Series D Warrants for 11,500 shares of Series E Preferred Stock and related warrants. The Company also exchanged $0.1 million in accounts payables for 149 shares of Series E Preferred Stock and related warrants and issued 923 shares of Series E Preferred Stock and related Warrants to certain investors in exchange for a waiver of rights under exchange agreements signed in December 2018 and March 2019. Of the net proceeds and equitized value received, the Company allocated an estimated fair value of $20.8 million to the 2019 Warrants. As a result of the Series E Preferred Stock and Series E-1 Preferred Stock having an effective conversion price that was lower than the market price on the date of issuance, the Company has recognized a beneficial conversion feature of $18.3 million. Due to the Series E Preferred Stock and Series E-1 Preferred Stock being immediately convertible, the beneficial conversion feature was recognized in full as a deemed dividend.

Series D Preferred Stock

On November 5, 2018, the Company’s Board authorized the establishment of a new series of preferred stock designated as Series D Preferred Stock, $0.01 par value, the terms of which are set forth in the certificate of designations for such series of Preferred Stock. On March 29, 2019, the Company exchanged all issued and outstanding shares of its Series D Preferred Stock (having an aggregate stated value of $1,160,000) and received $400,000 in cash proceeds in exchange for the issuance of the March 2019 Notes. Please see the discussion under Note 8 above.

Common Stock Issuances

During the nine months ended September 30, 2019 the Company issued 11,285 shares of the Company’s common stock pursuant to the exercise of Pre-Funded Series D Warrants that were issued in connection with the 2018 Notes discussed in Note 8 above.

Warrant Exchange

In April 2019, the Company entered into an exchange agreement with an institutional investor with respect to warrants held by such investor (the “February 2018 Warrants”). The February 2018 Warrants were issued to several institutional investors as part of the Company’s February 2018 sale of the Company’s common stock and the issuance of warrants to purchase common shares. Pursuant to the exchange agreement, the Company issued 92 shares of the Company’s common stock (the “Exchange Shares”) in exchange for the February 2018 Warrants. The exchange resulted in a loss of approximately $6,000 which is recognized in the statement of operations.

Share-Based Compensation

The Company’s 2019 Equity Incentive Plan (the “Plan”) allows for grants in the form of incentive stock options, nonqualified stock options, stock units, stock awards, stock appreciation rights, and other stock-based awards. All of the Company’s officers, directors, employees, consultants and advisors are eligible to receive grants under the Plan. The maximum number of shares reserved for issuance under the Plan is 2,142. Options to purchase shares of common stock are granted at exercise prices not less than 100% of fair value on the dates of grant. As of September 30, 2019, the Plan had approximately 502 shares available for grant.

The following is a summary of stock option activity under the Plan for the nine months ended September 30, 2019:


	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2018		—
Granted		1,782			196.70
Exercised		—
Cancelled/Forfeited		(142	)		196.70

Outstanding at September 30, 2019		1,640		$	196.70		9.4	$	—

Exercisable at September 30, 2019		1,095		$	196.70		9.4	$	—

The following weighted average assumptions were used to compute the fair value of stock options granted during the nine months ended September 30, 2019:


	Nine months ended September 30, 2019
Dividend yield		N/A
Expected volatility		147.6	%
Weighted average risk-free interest rate		2.6	%
Weighted average expected life (in years)		5.5
Weighted average grant date fair value	$	0.259

At September 30, 2019, there was approximately $0.1 million of total unrecognized compensation expense related to non-vested share-based compensation awards under the plans for employee and board stock option grants. The cost is expected to be recognized over a weighted average period of 0.3 years. For the three and nine months ended September 30, 2019, the Company recognized share-based compensation expense of approximately $70,000 and $203,000 in the statement of operations, respectively. For the same periods in 2018, the Company recognized share-based compensation expense of approximately $116,000 and income of $5,000 in the statement of operations, respectively.


	Three months ended September 30,				Nine months ended September 30,
*(in thousands)*	2019		2018		2019		2018
Selling, general and administrative	$	54	$	116	$	160	$	58
Research and development		16		—		43		(63	)

Total	$	70	$	116	$	203	$	(5	)

Warrants

The following is a summary of warrant activity for the nine months ended September 30, 2019:


	Warrants			Exercise Price per Share		Weighted Average Exercise Price		Weighted Average Remaining Life (Years)
Outstanding at December 31, 2018		93,835		$	7.00 - $7,000	$	150.67		5.75
Issued		1,001,995					42.00
Exercised		(11,285	)				7.00
Exchanged		(82,521	)				170.31

Outstanding at September 30, 2019		1,002,024		$	7.00 - $42.00	$	42.00		5.05

(11)

STOCKHOLDERS’ EQUITY

Preferred Stock Issuances

Series D Preferred Stock

On November 5, 2018, the Company’s Board authorized the establishment of a new series of preferred stock designated as Series D Preferred Stock, $0.01 par value, the terms of which are set forth in the certificate of designations for such series of Preferred Stock which was filed with the State of Delaware on November 5, 2018. On November 6, 2018 and November 30, 2018, the Company entered into a securities purchase agreements with an institutional investor which had purchased 101 shares of Series D Preferred Stock. At issuance, the Series D Preferred Stock would convert to 2,366 common shares.

On March 29, 2019, the Company exchanged all of its Series D Preferred Stock (with a stated value of $1,160,000) and received $400,000 in proceeds and issued a senior secured promissory note to an investor with a principal amount of $1,560,000. As a result, the Series D Preferred Stock is no longer outstanding.

Stock and Warrant Issuances

February 2018 Financing

In February 2018, the Company completed the sale of 606 shares of its Common Stock, 109 pre-funded warrants and the issuance of warrants to purchase 1,429 common shares (the “February 2018 Warrants”) pursuant to a placement agent agreement, with net proceeds after expenses of $4.3 million. The February 2018 Warrants are exercisable one year after the anniversary date of their issuance. At December 31, 2018, the February 2018 Warrants were exercisable at $7,000 per share with 273 warrants outstanding. The Company allocated an estimated fair value of $18.3 million to the February 2018 Warrants. The Company valued the February 2018 Warrants using the following inputs: exercise price of $7,000; contractual term of six years; volatility of 122.68% and risk-free rate of approximately one percent. Due to certain price protection features in the agreement, the February 2018 Warrants were accounted for as a derivative liability at issuance and will be subsequently marked to market through the statement of operations.

September 2018 Rights Offering

In September 2018, the Company completed the sale of 6,669 shares of its Common Stock, with net proceeds after expenses of approximately $7.0 million. The rights offering was made pursuant to a Registration Statement on Form S-1 that was made effective on August 3, 2018.

December 2018 Warrant Exchange

In December 2018, the Company entered into exchange agreements with several institutional investors with respect to their November 2017 Warrants and February 2018 Warrants. The Company issued to the investors 1,179 shares of Common Stock (the “Exchange Shares”) in exchange for the Existing Warrants (the “Exchange”). The Exchange was made in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended.

Pre-Funded Series D Warrant Exercises

5,379 Pre-Funded Series D Warrants were exercised during 2018.

In October 2018, the Company filed a registration statement on Form S-3 with the SEC, which was declared effective on December 21, 2018 and allows the Company to offer and sell, from time to time in one or more offerings, up to $100.0 million shares of Common Stock, preferred stock, warrants, debt securities and stock purchase contracts as it deems prudent or necessary to raise capital at a later date. The Company has lost its eligibility to use Form S-3 due to the late filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and its late filing of its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2019.

Stock Incentive Plans

As a result of the May 2, 2018 reverse stock split, the Company’s Stock Incentive Plan has no active grants and no further shares available to be granted.

As previously reported, on February 1, 2019 the Board of Directors of the Company adopted the Company’s 2019 Equity Incentive Plan (the “2019 Plan”), pursuant to which 2,142 shares of Common Stock of the Company are available for grants through February 1, 2029 to the Company’s employees, directors and consultants. On February 1, 2019, options to purchase 1,782 shares of Common Stock, at an exercise price of $196.70 per share, were granted under the 2019 Plan to certain executive officers and employees of the Company. The stock options are vesting over a period of one year commencing from the date of grant in twelve equal monthly increments commencing on the one month anniversary of the grant date. The stock options carry a ten year term and expire on February 1, 2029.

For the years ended December 31, 2018 and December 31, 2017, the Company recognized compensation income of $0.04 million and $0.05 million, respectively, related to stock options granted to employees.

For the years ended December 31, 2018 and December 31, 2017, the Company recognized compensation expense of approximately $0.1 million and $0.1 million, respectively, related to restricted stock granted to employees and consultants.

Warrants


	Warrants			Exercise Price per Share		Weighted Average Exercise Price		Weighted Average Remaining Life (Years)
Outstanding at January 1, 2017		1		$ $	197,225,000 - 13,798,400,000	$	637,218,564		5.59
Warrants issued		21					1,610,000
Warrants exercised		(1	)				2,954,000
Warrants expired		(1	)				591,675,000

Outstanding at December 31, 2017		20		$ $	857,500 - 13,798,400,000	$	4,868,205,366		4.88
Warrants issued in Feb 2018 registered direct offering		1,538					6,531
Warrants issued with convertible notes		98,814					126
Exercised		(6,536	)				1,252
Expired		(1	)				13,798,400,000

Outstanding at December 31, 2018		93,835		$	7.00 - $7,000	$	150.67		5.75

Restructuring Expenses

12 Months Ended

Dec. 31, 2018

Restructuring And Related Activities [Abstract]

Restructuring Expenses

(9)

RESTRUCTURING EXPENSES

In order to help reduce operating costs and more appropriately align its office space with the size of its workforce, the Company entered into two sub-leases for office space at its 810 Seventh Avenue office. On May 22, 2014, the Company entered into a sub-lease agreement (“Sub-lease #1”) for approximately one-half of the office space at this location (“Suite 3500”) resulting in a lease restructuring reserve of approximately $0.9 million. On August 18, 2014, the Company entered into a sub-lease agreement (“Sub-lease #2”) for the remaining one-half of office space at its 810 Seventh Avenue office (“Suite 3505”) resulting in a lease restructuring reserve of approximately $0.7 million. As of December 31, 2018, the total remaining lease restructuring liability for its leased office space was approximately $0.4 million, of which approximately $0.2 million and $0.2 million were included in Accrued expenses and Other non-current liabilities on the consolidated balance sheets, respectively.

The following table provides the year-to-date activity of the Company’s restructuring reserves as of December 31, 2018:


(in thousands)	Lease Liability
Reserve balance at December 31, 2017	$	604
Charges		—
Payments/Utilizations		(208	)

Reserve balance at December 31, 2018	$	396

Outstanding Debt

9 Months Ended

Sep. 30, 2019

Selling, general and administrative expenses

Outstanding Debt

(8)

OUTSTANDING DEBT

On June 6, 2019, the Company entered into an agreement with two institutional investors, pursuant to which the investors agreed to transfer and surrender to the Company for cancellation of warrants to purchase 5,605 shares of the Company’s common stock (the “Series D Warrants”) and warrants to purchase 0.1 million shares of the Company’s common stock (the “Pre-Funded Series D Warrants”). Under the terms of the Purchase Agreement, the Company agreed to sell and issue to the investors 8% Senior Secured Promissory Notes in an aggregate principal amount of $2.0 million in full payment and satisfaction of the purchase price for the Series D Warrants and Pre-Funded Series D Warrants. This agreement was effective on July 15, 2019, upon the closing of the Company’s Private Placement discussed further in Note 9. The principal is recognized in Convertible notes payable, long-term on the Condensed Consolidated Balance Sheet.

On April 19, 2019, April 26, 2019, May 9, 2019 and May 23, 2019, the Company issued 8% senior secured notes (collectively, the “2019 Notes”) in the aggregate principal amount of $3.3 million, to two institutional investors. The 2019 Notes bore interest at the rate of 8% per annum and were to mature on the six-month anniversary of issuance in each case. The 2019 Notes were not convertible. The 2019 Notes contained standard events of default and remedies and are secured by a lien on the Company’s assets. The 2019 Notes were exchanged as part of the recent equity financing discussed further in Note 9 and are no longer outstanding.

In March 2019, the Company exchanged all issued and outstanding shares of its Series D Preferred Stock (having an aggregate stated value of $1,160,000) and received $400,000 in cash proceeds in exchange for a senior secured promissory note (the “March 2019 Note”) in the principal amount of $1,560,000. The March 2019 Note bore interest at the rate of 8% per annum, and were to mature on April 1, 2020, and was not convertible. The March 2019 Note was exchanged as part of the recent equity financing discussed further in Note 9 and is no longer outstanding.

On June 4, 2018, July 21, 2018, August 29, 2018, and September 21, 2018, the Company issued 8% senior secured convertible notes (collectively, the “2018 Notes”) in the aggregate principal amount of $9.4 million to several institutional investors. The 2018 Notes bore interest at the rate of 8% per annum and had maturity dates between December 2018 and March 2021. The 2018 Notes were initially convertible and secured pursuant to a Security Agreement which created a first priority security interest in all of the personal property (other than Excluded Collateral as defined in the Security Agreement) of the Company of every kind and description, tangible or intangible, whether currently owned and existing or created or acquired in the future. In March 2019, the Company amended the June 2018, July 2018 and August 2018 Notes to make them non-convertible. There was no impact to the financial statements. In April 2019, the Company received notices of default from the investors in the 2018 Notes which resulted in a 25%, or $1.1 million, increase in principal and an increase in the interest rates from 8% to 18%. The 2018 Notes were exchanged as part of the recent equity financing discussed further in Note 9 and are no longer outstanding.

The following tables provide a summary of the various notes issued at September 30, 2019 and December 31, 2018:


*(in millions)*	Conversion price		Current interest rate			Principal
Long term convertible notes payable
8.0% July 2019 Notes	$	1,500		8	%	$	2.0


*(in millions)*	Interest rate			Conversion price		Principal		Unamortized discount			Carrying value
December 4, 2018		8.0	%	$	1,225	$	1.7	$	—		$	1.7
March 1, 2019		8.0	%	$	1,225		0.6		(0.5	)		0.1
March 21, 2019		8.0	%	$	1,225		0.4		(0.2	)		0.2
December 4, 2019		8.0	%	$	1,225		0.9		(0.9	)		—
March 1, 2020		8.0	%	$	1,225		0.8		(0.8	)		—
March 21, 2020		8.0	%	$	1,225		0.1		(0.1	)		—

Balance at December 31, 2018						$	4.5	$	(2.5	)	$	2.0

Subsequent Events

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

(14)

SUBSEQUENT EVENTS

Amendments to Registration Rights Agreements

On September 30, 2019, the Company and holders of a majority of the Company’s Series E and Series E-1 Convertible Preferred Stock entered into an amendment to those certain registration rights agreements, dated as of July 11, 2019 (effective as of July 15, 2019) (the “July Registration Rights Agreement”), and August 15, 2019 (the “August Registration Rights Agreement”) between the Company and the holders signatory thereto (the “Amendment”). The Amendment extends the applicable deadline for having a registration statement declared effective by the Securities and Exchange Commission (the “SEC”) under certain circumstances from 75 days to 120 days following the date of the July Registration Rights Agreement.

On October 18, 2019, the Company and holders of a majority of the Company’s Series E and Series E-1 Convertible Preferred Stock entered into a second amendment (the “Second Amendment”) to those certain registration rights agreements, dated as of July 11, 2019 (effective as of July 15, 2019) and August 15, 2019, in each case as amended on September 30, 2019, between the Company and the holders signatory thereto. The Second Amendment eliminates the deadline to file a pre-effective registration statement amendment within 10 days of the Company’s receipt of comments from the SEC.

On October 29, 2019, the Company and holders of a majority of the Company’s Series E and Series E-1 Convertible Preferred Stock and related warrants entered into a third amendment (the “Third Amendment”) to those certain registration rights agreements, dated as of July 11, 2019 (effective as of July 15, 2019) and August 15, 2019, in each case as previously amended on September 30, 2019 and October 18, 2019, between the Company and the holders signatory thereto (collectively, the “Registration Rights Agreements”). The Third Amendment clarifies that the liquidated damages specified in Section 2(d) of the Registration Rights Agreements shall not be payable to any holder whose Registrable Securities, as defined in the Registration Rights Agreements, are fully registered on an effective registration statement on the Effectiveness Date, as defined in the Registration Rights Agreements.

Waiver and Forbearance Agreement

Also on October 29, 2019, the Company entered into a Waiver and Forbearance Agreement (“Waiver”) with Rosalind Master Fund LP and Rosalind Opportunities Fund I LP, holders of its Series E and Series E-1 Convertible Preferred Stock and related warrants (together, “Rosalind”) pursuant to which Rosalind has agreed, among other things, to waive compliance with certain specified terms and conditions under the Registration Rights Agreements and forbear from exercising certain of their rights and remedies related to certain defaults thereunder for the time periods indicated therein.

Reverse Stock Split

Pursuant to the Company’s obligations under the July 2019 Private Placement and the August 2019 Private Placement, the Company presented a proposal for a reverse stock split at its Annual Meeting of Stockholders on September 17, 2019. On the same date, a majority of stockholders of the Company approved a proposal to approve and adopt an amendment to our Amended and Restated Certificate of Incorporation to effect a reverse stock split of our shares of common stock, $0.01 par value per share, issued and outstanding or reserved for issuance, at a specific ratio within a range from 1-for-50 to 1-for-1,200, inclusive, prior to the first anniversary of stockholder approval of the proposal, and to grant authorization to the Board of Directors to determine, in its sole discretion, whether to effect the reverse stock split, as well as its specific timing and ratio. Also on the same date, the Company’s Board of Directors adopted resolutions to effect as soon as reasonably practicable the reverse split of the issued and outstanding shares of the Common Stock at a ratio of 1-for-100.

On October 17, 2019, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation (the “Charter Amendment”) to effect a reverse stock split of the issued and outstanding shares of the Company’s common stock, $0.01 par value per share, at a ratio of 1-for-100 to be effective as of October 22, 2019 at 8:30 a.m., New York City time (the “Reverse Stock Split”). The Charter Amendment did not change the par value or any other terms of the common stock.

On October 22, 2019, the Company filed with the Secretary of State of the State of Delaware a Certificate of Correction (the “Certificate of Correction”) to the Charter Amendment, rescinding the Charter Amendment, citing an inaccuracy in Article Third of the Charter Amendment, which states an effective time for the Reverse Stock Split of 8:30 a.m. New York City time on October 22, 2019. Such effective time was based upon the Company’s prior receipt, on October 17, 2019, of confirmation by the Financial Industry Regulatory Authority, Inc. (“FINRA”) that it had completed its review of the Reverse Stock Split, including the effective time, whereupon the Company undertook to effect the Reverse Stock Split by filing the Charter Amendment. On the evening of October 21, 2019, subsequent to the Company’s filing of the Charter Amendment and issuance of a press release on October 18, 2019 announcing the confirmation by FINRA, FINRA notified the Company’s counsel that it was rescinding its prior confirmation. The Certificate of Correction further provides that the Company is currently awaiting FINRA confirmation. When such confirmation is obtained, the Company intends to file a Certificate of Amendment effectuating the Reverse Stock Split.

Following FINRA’s completion of its review of the Company’s Reverse Stock Split, on December 24, 2019, the Company effected a reverse stock split at which time Delcath’s common stock began trading on the OTCQB on a one-for-seven hundred (1:700) split-adjusted basis. All owners of record as of the open of the OTCQB market on December 24, 2019 received one issued and outstanding share of Delcath common stock in exchange for seven hundred outstanding shares of Delcath common stock. No fractional shares were issued in connected with the reverse stock split. All fractional shares created by the one-for-seven hundred exchange were rounded up to the next whole share. The reverse stock split had no impact on the par value per share of Delcath common stock, which remains at $0.01. All current and prior period amounts related to shares, share prices and earnings per share, presented in the Company’s consolidated financial statements and the accompanying Notes have been restated to give retrospective presentation for the reverse stock split.

Preferred Stock conversions

From October 1, 2019 through November 14, 2019, the Company issued 5,286 shares of Common Stock to the holders of Series E and Series E-1 Preferred Stock pursuant to conversion notices submitted by the holders.

(15)

SUBSEQUENT EVENTS

Since January 1, 2019, the Company has issued 11,285 shares pursuant to exercises of Pre-Funded Series D Warrants.

As previously reported, in January 2019, the Company terminated Backstop Commitment Purchase Agreements with four institutional investors, by their mutual agreement. The Company and such institutional investors entered into Backstop Commitment Purchase Agreements in connection with a rights offering conducted by the Company that closed in September 2018 in which the Company proposed to raise up to $50 million by distributing, at no charge, to holders of its Common Stock non-transferable rights to subscribe for and purchase shares of the Company’s Common Stock at a price of $1,225 per share (the “Subscription Price”). Pursuant to the Backstop Commitment Purchase Agreements, such institutional investors agreed to purchase, at the Subscription Price, shares not issued in the rights offering following the expiration of the rights offering subscription period, subject to certain conditions, including the requirement that the closing price of a share of the Company’s Common Stock as reported by the OTCQB or higher market for each of the five business days immediately preceding a purchase exceeded the Subscription Price. The Backstop Commitment Purchase Agreements were terminated by mutual agreement of the parties thereto due to the fact that the closing price of the Company’s Common Stock had not exceeded the Subscription Price since October 1, 2018 and, thus, the institutional investors had no obligation to purchase shares.

On March 29, 2019, the Company exchanged all of its Series D Preferred Stock (with a stated value of $1,160,000) and received $400,000 in proceeds and issued a senior secured promissory note to an investor with a principal amount of $1,560,000. The note is due on April 1, 2020, bears interest at 8% per annum and is nonconvertible.

On April 19, 2019, April 26, 2019, May 9, 2019 and May 23, 2019, the Company borrowed an aggregate $3.3 million from two institutional investors and issued promissory notes to the investors. The promissory notes have an aggregate principal amount of $3.3 million, bear interest at the rate of 8% per annum and are due six months from the issuance of each note. The promissory notes are nonconvertible. The notes contain standard events of default and remedies therefor. The Company’s obligations under the promissory notes to the institutional investor are secured by a lien on the Company’s assets.

On June 6, 2019, the Company entered into an agreement with two institutional investors, pursuant to which the investors agreed to transfer and surrender to the Company for cancellation of 5,605 Series D Warrants and 0.1 million Pre-Funded Series D Warrants. Under the terms of the Purchase Agreement, the investors agreed to defer the payment of the purchase price for the Series D Warrants and Pre-Funded Series D Warrants and, accordingly, the Company agreed to sell and issue to the investors 8% Senior Secured Promissory Notes in an aggregate principal amount of $2.0 million in full payment and satisfaction of the purchase price for the Series D Warrants and Pre-Funded Series D Warrants.

On December 24, 2019, the Company effected a reverse stock split at which time Delcath’s common stock began trading on the OTCQB on a one-for-seven hundred (1:700) split-adjusted basis. All owners of record as of the open of the OTCQB market on December 24, 2019 received one issued and outstanding share of Delcath common stock in exchange for seven hundred outstanding shares of Delcath common stock. No fractional shares were issued in connected with the reverse stock split. All fractional shares created by the one-for-seven hundred exchange were rounded up to the next whole share. The reverse stock split had no impact on the par value per share of Delcath common stock, which remains at $0.01. All current and prior period amounts related to shares, share prices and earnings per share, presented in the Company’s consolidated financial statements and the accompanying Notes have been restated to give retrospective presentation for the reverse stock split.

Consolidated Statements of Operations and Comprehensive Loss - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

Dec. 31, 2017

Cost of goods sold

$ (172)

$ (233)

$ (440)

$ (600)

$ (1,009)

$ (701)

Gross profit

208

591

623

1,784

2,398

2,014

Operating expenses:

4,002

2,279

9,204

7,286

9,819

9,684

Research and development expenses

1,778

4,106

6,789

13,886

19,650

10,495

Total operating expenses

5,780

6,385

15,993

21,172

29,469

20,179

Operating loss

(5,572)

(5,794)

(15,370)

(19,388)

(27,071)

(18,165)

Change in fair value of the warrant liability, net

434

1,198

451

18,407

19,706

15,103

Gain on warrant extinguishment

(1,123)

9,613

Loss on debt extinguishment

(1,123)

(29,924)

Loss on issuance of financial instrument

(1,714)

(1,721)

(2,826)

Interest expense

(671)

(3,151)

(4,735)

(3,402)

(7,959)

(21,703)

Other income (expense)

(10)

(21)

(41)

Net (loss) income

(7,519)

(8,880)

(21,371)

(8,353)

(19,222)

(45,117)

Other comprehensive (loss) income:

Foreign currency translation adjustments

105

Total other comprehensive (loss) income

$ (7,430)

$ (8,775)

$ (21,332)

$ (8,290)

$ (19,214)

$ (45,034)

Common share data:

Basic (loss) income per common share

$ (287.00)

^[1]

$ (175.00)

^[1]

$ (924.00)

^[1]

$ (420.00)

^[1]

$ (504.00)

$ (2,275,000)

Diluted loss per common share

$ (987.00)

^[1]

$ (175.00)

^[1]

$ (1,715.00)

^[1]

$ (448.00)

^[1]

$ (504.00)

$ (2,275,000)

Weighted average number of basic shares outstanding

26,112

^[1]

51,229

^[1]

23,095

^[1]

19,841

^[1]

38,151

Weighted average number of diluted shares outstanding

26,112

^[1]

51,229

^[1]

23,095

^[1]

19,841

^[1]

38,151

Basic and diluted loss per share

^[2]

$ (504.00)

$ (2,275,000)

Weighted average number of basic and diluted shares outstanding

^[2]

38,151

Product Revenue [Member]

Revenue

$ 216

$ 824

$ 528

$ 2,384

$ 3,378

$ 2,715

Other Revenue [Member]

Revenue

$ 164

$ 535

$ 29

[1]	reflects a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018 and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.
[2]	reflects a one-for-three hundred and fifty (1:350) reverse stock split effected on November 6, 2017, a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018, and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

Leases - Schedule of Maturity of Operating Leases Excluding Short-Term Leases (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Lessee Lease Description [Line Items]
Three months ended December 31, 2019	$ 180
Year ended December 31, 2020	701
Year ended December 31, 2021	198
Total	1,079
Less present value discount	(67)
Operating lease liabilities included in the condensed consolidated balance sheets at September 30, 2019	1,012
U.S. [Member]
Lessee Lease Description [Line Items]
Three months ended December 31, 2019	129
Year ended December 31, 2020	498
Year ended December 31, 2021	79
Total	706
Less present value discount	(40)
Operating lease liabilities included in the condensed consolidated balance sheets at September 30, 2019	666
Ireland [Member]
Lessee Lease Description [Line Items]
Three months ended December 31, 2019	51
Year ended December 31, 2020	203
Year ended December 31, 2021	119
Total	373
Less present value discount	(27)
Operating lease liabilities included in the condensed consolidated balance sheets at September 30, 2019	$ 346

Description of Business - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Net loss	$ 7,519	$ 5,959	$ 7,894	$ 8,880	$ 6,658	$ (7,185)	$ 21,371	$ 8,353	$ 19,222	$ 45,117
Net cash used in operating activities							$ 18,322	$ 12,894	$ 14,732	$ 15,398

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Net Loss per Common Share

Fair Value Measurements - Schedule of Fair Value of Outstanding Warrants (Details)	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Contractual Term [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants expiration period	5 years
Expected Volatility [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input	2.018
Risk-free Interest Rates [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input	0.016
Minimum [Member] \| Contractual Term [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants expiration period		1 year 1 month 6 days	9 months 25 days
Minimum [Member] \| Expected Volatility [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input		1.457	1.309
Minimum [Member] \| Risk-free Interest Rates [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input		0.025	0.017
Maximum [Member] \| Contractual Term [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants expiration period		5 years 1 month 6 days	4 years 10 months 17 days
Maximum [Member] \| Expected Volatility [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input		2.653	2.669
Maximum [Member] \| Risk-free Interest Rates [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants measurement input		0.026	0.021

Net Loss per Common Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

(11)

NET LOSS PER COMMON SHARE


	Three months ended September 30,						Nine months ended September 30,
(in thousands, except share data)	2019			2018			2019			2018
Net (loss) income—basic	$	(7,519	)	$	(8,880	)	$	(21,371	)	$	(8,353	)
Preferred stock dividends		(18,238	)		—			(18,238	)		—
Adjustment for gain on warrant income		—			(13	)		—			(534	)

Net loss—diluted	$	(25,757	)	$	(8,893	)	$	(39,609	)	$	(8,887	)
Weighted average shares outstanding—basic*		26,112			51,229			23,095			19,841

Weighted average shares outstanding—diluted*		26,112			51,229			23,095			19,841

Net loss per share—basic*	$	(287.00	)	$	(175.00	)	$	(924.00	)	$	(420.00	)
Net loss per share—diluted*	$	(987.00	)	$	(175.00	)	$	(1,715.00	)	$	(448.00	)

reflects a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018 and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

As discussed in Note 9, the Series E Preferred Stock and the Series E-1 Preferred Stock were each determined to have a beneficial conversion feature which was accounted for as a deemed dividend.

The following potentially dilutive securities were excluded from the computation of earnings per share as of September 30, 2019 and 2018 because their effects would be anti-dilutive:


	September 30,
	2019		2018
Stock options		1,643		—
Common stock warrants—equity		—		6,005
Common stock warrants—liability		1,001,963		1,429
Assumed conversion of Series E and E-1 Preferred Stock		1,001,963		—
Assumed conversion of convertible notes		31,747		8,057

Total		2,037,316		15,491

Outstanding Debt - Summary of Various Notes Issued (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Principal		$ 4.5
Unamortized discount		(2.5)
Carrying value		$ 2.0
December 4, 2018 [Member]
Debt Instrument [Line Items]
Maturity date	Dec. 04, 2018	Dec. 04, 2018
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 1.7
Carrying value		$ 1.7
March 1, 2019 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 01, 2019	Mar. 01, 2019
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.6
Unamortized discount		(0.5)
Carrying value		$ 0.1
March 21, 2019 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 21, 2019	Mar. 21, 2019
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.4
Unamortized discount		(0.2)
Carrying value		$ 0.2
December 4, 2019 [Member]
Debt Instrument [Line Items]
Maturity date	Dec. 04, 2019	Dec. 04, 2019
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.9
Unamortized discount		$ (0.9)
March 1, 2020 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 01, 2020	Mar. 01, 2020
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.8
Unamortized discount		$ (0.8)
March 21, 2020 [Member]
Debt Instrument [Line Items]
Maturity date	Mar. 21, 2020	Mar. 21, 2020
Interest rate		8.00%
Conversion price		$ 1,225
Principal		$ 0.1
Unamortized discount		$ (0.1)
Long Term Convertible Notes Payable [Member] \| 8.0% July 2019 Notes [Member]
Debt Instrument [Line Items]
Interest rate	8.00%
Conversion price	$ 1,500
Principal	$ 2.0

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

(12)

DERIVATIVE FINANCIAL INSTRUMENTS

Management expects that the Warrants will either be exercised or expire worthless. The fair value of the Warrants at December 31, 2018 was determined by using option pricing models assuming the following:


	December 31, 2018	December 31, 2017
Expected life (in years)	1.13 - 5.11	0.82 - 4.88
Expected volatility	145.7% - 265.3%	130.9% - 266.9%
Risk-free interest rates	2.5% - 2.6%	1.7% - 2.1%

Assets and Liabilities Measured at Fair Value on a Recurring Basis


	Assets and Liabilities Measured at Fair Value on a Recurring Basis
	Level 1				Level 2				Level 3				Balance at December 31,
(in thousands)	2018		2017		2018		2017		2018		2017		2018		2017
Liabilities
Derivative instrument liabilities	$	—	$	—	$	—	$	—	$	33	$	560	$	33	$	560

For the twelve months ended December 31, 2018 and December 31, 2017 there were no transfers in or out of Level 1, 2 or 3 inputs.

The table below presents the activity within Level 3 of the fair value hierarchy for the twelve months ended December 31, 2018:

Fair Value Measurements Using Significant Unobservable

Inputs (Level 3)


(in thousands)	Warrant Liability
Balance at January 1, 2017	$	18,751
Total change in the liability included in earnings		(15,103	)
Extinguishment of convertible note warrant		(17,489	)
Fair value of warrants issued		16,953
Fair value of warrants exercised		(2,552	)

Balance at December 31, 2017		560

Fair value of warrants issued		23,533
Total change in the liability included in earnings		(19,706	)
Reclass from liability to equity		(4,210	)
Fair value of warrants exchanged		(144	)

Balance at December 31, 2018	$	33

General

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

General

(1)

GENERAL

The unaudited interim condensed consolidated financial statements of Delcath Systems, Inc. (“Delcath” or the “Company”) as of and for the three and nine months ended September 30, 2019 and 2018 should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the “Annual Report”) which was filed with the Securities Exchange Commission (the “SEC”) on June 14, 2019 and may also be found on the Company’s website (www.delcath.com). In these notes to the condensed consolidated financial statements the terms “us”, “we” or “our” refer to Delcath and its consolidated subsidiaries.

Description of Business

Delcath Systems, Inc. is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. Our investigational product—Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (“Melphalan/HDS”)—is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. In Europe, our system is commercially available under the trade name Delcath Hepatic CHEMOSAT ^® Delivery System for Melphalan (“CHEMOSAT”) where it has been used at major medical centers to treat a wide range of cancers of the liver.

Our clinical development program (“CDP”) for Melphalan/HDS is comprised of The FOCUS Clinical Trial for Patients with Hepatic Dominant Ocular Melanoma (the “FOCUS Trial”) a global registration clinical trial that is investigating objective response rate in mOM, and the ALIGN Trial, a global Phase 3 clinical trial for ICC (the “ALIGN Trial”). Our CDP also includes a registry for CHEMOSAT commercial cases performed in Europe and sponsorship of select investigator-initiated trials (“IITs”).

Liquidity and Operating Matters

The accompanying interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses since inception and expects to continue incurring losses for the next several years. These losses, among other factors, raise substantial doubt about the Company’s ability to continue as a going concern.

The Company’s existence is dependent upon management’s ability to obtain additional funding sources or to enter into strategic alliances. There can be no assurance that the Company’s efforts will result in the resolution of the Company’s liquidity needs. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

Basis of Presentation

These interim condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (GAAP) and with the SEC’s instructions to Form 10-Q and Article 10 of Regulation S-X. They include the accounts of all entities controlled by Delcath and all significant inter-company accounts and transactions have been eliminated in consolidation.

The preparation of interim condensed consolidated financial statements requires management to make assumptions and estimates that impact the amounts reported. These interim condensed consolidated financial statements, in the opinion of management, reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company’s results of operations, financial position and cash flows for the interim periods ended September 30, 2019 and 2018; however, certain information and footnote disclosures normally included in our Annual Report have been condensed or omitted as permitted by GAAP. It is important to note that the Company’s results of operations and cash flows for interim periods are not necessarily indicative of the results of operations and cash flows to be expected for a full fiscal year or any interim period.

Significant Accounting Policies

A description of our significant accounting policies has been provided in Note 3 Summary of Significant Accounting Policies to the Consolidated Financial Statements included in the Company’s Annual Report filed for the fiscal year ended December 31, 2018.

Derivative Financial Instruments

The accounting treatment of derivative financial instruments requires that the Company record financial instruments at their fair value as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. As a result of issuing such instruments the Company has adopted a sequencing policy in accordance with ASC 815-40-35-12 whereby all future instruments may be classified as a derivative liability with the exception of instruments related to share-based compensation issued to employees. However, the Company has recognized the Series E Preferred Stock and Series E-1 Preferred Stock issued in July 2019 and August 2019 as equity because the agreements related to the issuance of those instruments specifically state that the common shares underlying the Preferred Stock take priority in registration. Additionally, the Company has a sufficient number of authorized shares for the issuance of common shares upon the conversion of the Preferred Stock. The Company did not have sufficient authorized shares to settle the associated warrants and accordingly has classified such warrants as a liability in the accompanying financial statements.

Recently Adopted Accounting Pronouncements

In February 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). ASU 2018-02 allows a company to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for periods beginning after December 15, 2018. Upon adoption of ASU 2018-02, the Company did not elect to reclassify the tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings, as the stranded tax effects were insignificant.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) effective January 1, 2019, electing the practical expedients and applying the transition provisions as of the effective date. Reporting periods beginning on or after January 1, 2019 are presented under Topic 842, while prior period amounts, as reported under previous GAAP, were not adjusted. The adoption of Topic 842 on January 1, 2019 did not have a significant impact on the Company’s consolidated results of operations or cash flows.

Inventories

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

(3)

INVENTORIES

Inventories consist of the following:


(in thousands)	September 30, 2019		December 31, 2018
Raw materials	$	351	$	358
Work-in-process		350		500
Finished goods		35		—

Total inventories	$	736	$	858

(5)

INVENTORIES

Inventories consist of:


(in thousands)	December 31, 2018		December 31, 2017
Raw materials	$	358	$	298
Work-in-process		500		721
Finished goods		—		229

Total Inventory	$	858	$	1,248

Outstanding Debt - Additional Information (Details) - USD ($)		1 Months Ended	9 Months Ended	12 Months Ended
	Mar. 29, 2019	May 23, 2019	Sep. 30, 2019	Dec. 31, 2018	Jun. 06, 2019	Apr. 30, 2019	Sep. 21, 2018
Debt Instrument [Line Items]
Debt instrument, principal face amount				$ 4,500,000
Series D Preferred Shares [Member]
Debt Instrument [Line Items]
Interest rate	8.00%
Preferred stock, stated value	$ 1,160,000
Proceeds from exchange of senior secured promissory note	400,000
Issuance of senior secured promissory note in exchange of preferred stock	$ 1,560,000
Maturity date	Apr. 01, 2020
Senior Secured Promissory Notes [Member]
Debt Instrument [Line Items]
Debt instrument, principal face amount					$ 2,000,000
Interest rate					8.00%
Senior Secured Notes
Debt Instrument [Line Items]
Debt instrument, principal face amount		$ 3,300,000
Interest rate		8.00%
Maturity period		6 months
Senior Secured Convertible Notes
Debt Instrument [Line Items]
Debt instrument, principal face amount							$ 9,400,000
Interest rate							8.00%
Debt instrument maturity start date			Dec. 31, 2018	Dec. 31, 2018
Debt instrument maturity end date			Mar. 31, 2021	Mar. 31, 2021
8.0% 2018 Notes [Member] \| Short Term Notes Payable [Member]
Debt Instrument [Line Items]
Debt instrument, notice of default description			Company received notices of default from the investors in the 2018 Notes which resulted in a 25%, or $1.1 million, increase in principal and an increase in the interest rates from 8% to 18%.
Debt instrument, default amount percentage						25.00%
Debt instrument, default amount						$ 1,100,000
Increase in interest rate on notes in event of default						18.00%
Series D Warrants [Member]
Debt Instrument [Line Items]
Number of common shares issuable on cancellation of warrants					5,605
Pre-Funded Series D Warrants [Member]
Debt Instrument [Line Items]
Number of common shares issuable on cancellation of warrants					100,000

Stockholders' Equity - Stock Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			9 Months Ended		12 Months Ended
	Apr. 01, 2019	May 02, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted			1,782
Shares available for grant		0
Stock option compensation income			$ 199	$ (40)	$ (40)	$ 50
Restricted stock compensation expense			$ 4	$ 35	98	79
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value			$ 0.259
Stock option compensation income					(40)	(50)
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock compensation expense					$ 100	$ 100
Common Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted		0
2019 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant			502
2019 Equity Incentive Plan [Member] \| Subsequent Event [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant	2,142
Stock option expiration term	10 years
Stock option expiration date	Feb. 01, 2029
2019 Equity Incentive Plan [Member] \| Subsequent Event [Member] \| One Month Anniversary of Grant Date [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock option vesting period	1 year
2019 Equity Incentive Plan [Member] \| Common Stock [Member] \| Subsequent Event [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted	1,782
Weighted average grant date fair value	$ 196.70

Commitments (Tables)

12 Months Ended

Dec. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

Schedule of future minimum lease payments, net of receipts due under terms of subleases under all operating leases

Future minimum lease payments, net of receipts due under the terms of subleases, under all operating leases at December 31, 2018 are as follows:


(in thousands)	Future Lease Payment
2019		885
2020		916
2021		348

	$	2,149

Commitments

12 Months Ended

Dec. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments

(13)

COMMITMENTS

Operating Leases

In February 2010, the Company entered into an agreement to lease (Initial Lease) 8,629 square feet of office space at 810 Seventh Avenue, New York, NY with an option to expand an additional 8,629 square feet. The term of the Initial Lease began in March, 2010. 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. The term of the Lease Amendment began in January 2011 and will expire in March 2021. In addition, the Lease Amendment extends the term of the Initial Lease to March 2021. The Initial Lease and the Lease Amendment provide for annual rent of $1.0 million in 2015, $1.0 million in 2016, and $1.2 million in 2017-2020. As discussed in Note 9, the Company has sub-leased this office space.

In August 2011, Delcath Systems Ltd. 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, 2011. The Lease provides for fixed annual lease amounts payable in advance in equal quarterly installments. The remaining annual lease amount is $0.2 million. Delcath Systems Ltd. is also required to pay for customary building operating expenses. Delcath Systems Ltd.’s payment obligations and performance of the Lease are guaranteed by Delcath. The Company has sub-leased a portion of this facility.

In September 2018, the Company entered into an amendment (the “1633 Sublease Amendment”) to a sub-lease agreement executed in March 2016 (the “1633 Sublease”) for approximately 6,877 square feet of office space at 1633 Broadway, New York, NY. The term began in April 2016 and under the terms of the 1633 Sublease Amendment is extended through February 2021 and provides for total annual base rent of $0.5 million.

In January 2019, the Company entered into an amendment (the “Park Road Lease Amendment”) to a lease agreement entered into in October 2018 (the “Park Road Lease”) for approximately 6,000 square feet of space located at 95-97 Park Road in Queensbury, New York. Under the terms of the Park Road Lease Amendment, the original two year term which began on October 31, 2018 was extended through November 2020 and provides for total annual base rent of $50,000 per year.

Future minimum lease payments, net of receipts due under the terms of subleases, under all operating leases at December 31, 2018 are as follows:


(in thousands)	Future Lease Payment
2019		885
2020		916
2021		348

	$	2,149

For the years ended December 31, 2018 and 2017 rent expense, net of receipts under the terms of subleases, totaled approximately $0.6 million and $0.6 million, respectively.

Litigation

As previously reported, on March 26, 2019, the Company commenced an action (the “Action”) in the Commercial Division of the Supreme Court for the State of New York, County of New York, styled as Delcath Systems, Inc., v. Iroquois Capital Investment Group LLC, Iroquois Master Fund Ltd., L1 Capital Global Opportunities Master Fund and First Fire Global Opportunities Fund LLC (Index No. 651749/2019). The Action seeks expedited equitable relief in the form of reformation and a declaratory judgement to remedy a scrivener’s error in the Series D Warrants issued in the Company’s February 2018 public offering such that those warrants do not contain a price and quantity ratchet upon a sale of Company securities at a price lower than the offering price in the February 2018 offering. The defendant, L1 Capital Global Opportunities Master Fund, settled with the Company by exchanging its Series D Warrants for Company Common Stock on a one-for-one basis, which is the same ratio for which other investors in the February 2018 round exchanged their Series D Warrants in December 2018. The Company and the remaining defendants in the Action, Iroquois Capital Investment Group LLC, Iroquois Master Fund Ltd. and First Fire Global Opportunities Fund LLC, entered into a settlement agreement on April 18, 2019, the full text of which is annexed as Exhibit 10.42 to our Annual Report on Form 10-K, pursuant to which such defendants surrendered the Series D Warrants and waived all rights granted to them by or in connection with the Series D Warrants and all rights afforded to them to participate in the Company’s future Common Stock offerings. In consideration therefor, pursuant to the settlement agreement, (i) the Company paid one-fifth of the reasonable fees and expenses of defendants’ counsel incurred in connection with the Action and negotiation of the settlement agreement, the total of which shall not exceed $50,000 (the “Settlement Fees”) and (ii) subject to the Company securing and closing certain contemplated financing, the Company agreed to pay to the defendants $400,000 and the remaining Settlement Fees.

As previously reported, on July 27, 2018, Hudson Bay Master Fund Ltd. filed a summons and complaint against the Company in the New York State Supreme Court, New York County alleging breaches by the Company of Hudson Bay’s rights of participation in future Company offerings granted in the September 2017 Securities Purchase Agreement between the Company and Hudson Bay and in the February 2018 Securities Purchase Agreement among, inter alia, the Company and Hudson Bay. In terms of relief sought, Hudson Bay claimed both monetary damages (which it claims to be in excess of $1 million) and specific performance. The Company denied any liability with respect to the claims set forth in the lawsuit. As previously reported, on January 4, 2019, the Company was notified by its litigation counsel that on December 28, 2018, the Suit was dismissed with prejudice by the filing of a Stipulation for Discontinuance in the New York State Supreme Court, New York County.

Letters of Credit

Under the terms of the lease agreement for office space at 810 Seventh Avenue, New York, NY, the Company is required to maintain a letter of credit in the amount of $0.9 million which will expire in February 2021 if not renewed by the Company. Under the terms of a sub-lease agreement for office space at 1633 Broadway, New York, NY, the Company is required to maintain a letter of credit in the amount of $0.1 million which will expire with the sublease in February 2021.

Leases - Summary of Operating and Financing Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Lease cost
Operating lease cost	$ 752
Financing lease cost	32
Sublease income	(348)
Total	436
Other information
Operating cash flows out from operating leases	(794)
Operating cash flows in from operating leases	348
Operating cash flows from financing leases	(35)
Right-of-use assets exchanged for new operating lease liabilities	874
U.S. [Member]
Lease cost
Operating lease cost	592
Financing lease cost	32
Sublease income	(215)
Total	409
Other information
Operating cash flows out from operating leases	(634)
Operating cash flows in from operating leases	215
Operating cash flows from financing leases	(35)
Right-of-use assets exchanged for new operating lease liabilities	$ 874
Weighted average remaining lease term	1 year 4 months 24 days
Weighted average discount rate - operating leases	8.00%
Ireland [Member]
Lease cost
Operating lease cost	$ 160
Sublease income	(133)
Total	27
Other information
Operating cash flows out from operating leases	(160)
Operating cash flows in from operating leases	$ 133
Weighted average remaining lease term	1 year 9 months 18 days
Weighted average discount rate - operating leases	8.00%

Convertible Notes Payable

12 Months Ended

Dec. 31, 2018

Convertible Notes Payable

(10)

CONVERTIBLE NOTES PAYABLE (SECURED CONVERTIBLE NOTES AND RELATED COMMON STOCK PURCHASE WARRANTS)

On June 4, 2018, July 21, 2018, August 29, 2018, and September 21, 2018, the Company issued 8% senior secured convertible notes (collectively, “the Notes”) to investors with aggregate principal of $9.4 million and maturity dates between December 2018 and March 2021. The Notes are secured pursuant to a Security Agreement which creates a first priority security interest in all of the personal property (other than Excluded Collateral (as defined in the Security Agreement) of the Company of every kind and description, tangible or intangible, whether currently owned and existing or created or acquired in the future. At December 31, 2018, the Notes were convertible at $1,225 per share subject to customary terms.

In April 2019, the Company received notices of default from the investors in the Notes.

In connection with the issuance of the Notes, the Company also issued 6,005 Series D Warrants with exercise prices ranging from $1,225—$2,800 and 0.1 million Pre-Funded Series D Warrants with a purchase price of $7.00. The warrants expire 5 years from the date they could first be exercised. The provisions in the Series D Warrants and Pre-Funded Series D Warrants issued in June 2018 required the Company to initially account for the warrants as derivative liabilities. The warrants were valued at $5.1 million. As a result, the Company recognized a discount to debt of $2.3 million and a loss on issuance of a financial instrument of $2.8 million.

The Company valued the June 2018 Series D Warrants using the following inputs:


	June 2018 Series D Warrant			June 2018 Pre- Funded Series D Warrants
Contractual life		5.0		5.5 - 6.5
Expected volatility		194.10	%	215.0% - 389.0%
Risk-free interest rates		2.78	%	2.13% - 2.30%

First Amendment to June 2018 Series D Warrants

In July 2018, the Company and the investor from the June 2018 transaction amended the June 2018 Pre-Funded Series D Warrants so that they are exercisable as of July 20, 2018 and the Company may redeem them at any time the Notes are no longer outstanding and the Company is not in default. The Company and the investor from the June 2018 transaction also amended the definition of a Fundamental Transaction in the June 2018 Warrants. This amendment resulted in $4.2 million related to the fair value of the June 2018 Warrants being reclassified from a liability to equity.

Amendment to June 2018 and July 2018 Notes and Pre-Funded Warrants

In August 2018, the Company amended its June 2018 Notes and July 2018 Notes such that the conversion price was reduced to $1,225, interest shall accrue until maturity, and the first $2.5 million and 50% of any subsequent financings shall be used to satisfy the Company’s obligations under the Notes. Effective the same date, the Company also amended its Pre-Funded Warrants such that the total number of June 2018 Pre-Funded Warrants was increased from 18,506 to 31,724 and the total number of July 2018 Pre-Funded Warrants was increased from 13,207 to 22,640. This amendment was accounted for as an extinguishment of debt as the change in cash flows exceeded 10%. The original June 2018 and July 2018 notes were written off and the amended June 2018 and July 2018 Notes were recorded at fair value as of the date of this amendment. The Company recorded $1.1 million loss on debt extinguishment related to this amendment.

The following table provides a summary of the Notes by their maturity dates (absent provisions of default):


*(in millions)*	Interest rate			Conversion price		Principal		Unamortized Discount			Carrying value
December 4, 2018		8.0	%	$	1,225	$	1.7	$	—		$	1.7
March 1, 2019		8.0	%		1,225		0.6		(0.5	)		0.1
March 21, 2019		8.0	%		1,225		0.4		(0.2	)		0.2
December 4, 2019		8.0	%		1,225		0.9		(0.9	)		—
March 1, 2020		8.0	%		1,225		0.8		(0.8	)		—
March 21, 2020		8.0	%		1,225		0.1		(0.1	)		—

Total Convertible Notes Payable, net						$	4.5	$	(2.5	)	$	2.0

Derivative Financial Instruments - Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Roll Forward]
Beginning balance	$ 33	$ 560	$ 18,751
Total change in the liability included in earnings	(456)	(19,706)	(15,103)
Extinguishment of convertible note warrant			(17,489)
Fair value of warrants issued	20,844	23,533	16,953
Fair value of warrants exercised			(2,552)
Reclass from liability to equity	(11)	(4,210)
Fair vaue of warrants exchanged		(144)
Ending balance	$ 20,410	$ 33	$ 560

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Series D Preferred Stock [Member]	Series E Preferred Stock [Member]	Series E-1 Preferred Stock [Member]	Common Stock [Member]	Preferred Stock [Member]	Preferred Stock [Member] Series D Preferred Stock [Member]	Preferred Stock [Member] Series E Preferred Stock [Member]	Preferred Stock [Member] Series E-1 Preferred Stock [Member]	Treasury Stock [Member]	Additional Paid in Capital [Member]	Additional Paid in Capital [Member] Series D Preferred Stock [Member]	Additional Paid in Capital [Member] Series E Preferred Stock [Member]	Additional Paid in Capital [Member] Series E-1 Preferred Stock [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] Series E Preferred Stock [Member]	Accumulated Deficit [Member] Series E-1 Preferred Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Series D Warrants [Member]	Series D Warrants [Member] Common Stock [Member]	Series D Warrants [Member] Additional Paid in Capital [Member]
Balance at Dec. 31, 2016	$ (1,490)									$ (51)	$ 277,790				$ (279,188)			$ (41)
Balance (in shares) at Dec. 31, 2016					1					(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense for issuance of stock options	50										50
Compensation expense for issuance of restricted stock	79										79
Issuance of common stock and rights for payments made in shares on convertible notes payable	40,121										40,121
Issuance of common stock and rights for payments made in shares on convertible notes payable (in shares)					375
Fair value of beneficial conversion feature of convertible note	4,908										4,908
Series B preferred stock dividend	(527)														(527)
Warrants exercised	19										19
Warrants exercised (in shares)					1
Fair value of warrants exercised	2,552										2,552
Net (loss) income	(45,117)														(45,117)
Foreign currency translation	83																	83
Balance at Dec. 31, 2017	678				$ 0					$ (51)	325,519				(324,832)			42
Balance (in shares) at Dec. 31, 2017					377					(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense for issuance of stock options	7										7
Compensation expense for issuance of restricted stock	14										14
Sale of common stock, net of expenses	4,251										4,251
Sale of common stock, net of expenses (in shares)					956
Fair value of warrants issued	(18,306)										(18,306)
Net (loss) income	7,185														7,185
Total comprehensive loss	(34)																	(34)
Balance at Mar. 31, 2018	(6,205)				$ 0					$ (51)	311,485				(317,647)			8
Balance (in shares) at Mar. 31, 2018					1,333					(1)
Balance at Dec. 31, 2017	678				$ 0					$ (51)	325,519				(324,832)			42
Balance (in shares) at Dec. 31, 2017					377					(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(8,353)
Foreign currency translation	63
Balance at Sep. 30, 2018	(4,865)				$ 0					$ (51)	328,266				(333,185)			105
Balance (in shares) at Sep. 30, 2018					8,138					(1)
Balance at Dec. 31, 2017	678				$ 0					$ (51)	325,519				(324,832)			42
Balance (in shares) at Dec. 31, 2017					377					(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation income related to cancellation of stock options	(40)										(40)
Compensation expense for issuance of restricted stock	98										98
Compensation expense for issuance of restricted stock (in shares)					236
Sale of common stock, net of expenses	10,916										10,916
Sale of common stock, net of expenses (in shares)					7,624
Fair value of warrants issued	(18,306)										(18,306)
Cashless exercise of warrants (in shares)					49
Issuance of pre-funded warrants	520										520
Exercise of pre-funded Series D Warrants (in shares)					5,250
Fair value of warrants issued with convertible notes	5,007										5,007
Fair value of warrants reclassified from liability to equity	(4,210)										(4,210)
Fair value of beneficial conversion feature of convertible note	44										44
Issuance of Preferred Stock		$ 1,004										$ 1,004
Issuance of Preferred Stock (in shares)							101
Exchange of warrants for common stock (in shares)					1,179
Fair value of warrants exchanged for common stock	144										144
Retirement of Treasury Stock										$ 51	(51)
Retirement of Treasury Stock (in shares)										1
Net (loss) income	(19,222)														(19,222)
Foreign currency translation	8																	8
Balance at Dec. 31, 2018	(14,939)				$ 0					$ 0	329,065				(344,054)			50
Balance (in shares) at Dec. 31, 2018					14,715	101
Balance at Mar. 31, 2018	(6,205)				$ 0					$ (51)	311,485				(317,647)			8
Balance (in shares) at Mar. 31, 2018					1,333					(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense for issuance of stock options	(47)										(47)
Compensation expense for issuance of restricted stock	(95)										(95)
Sale of common stock, net of expenses	(41)										(41)
Net (loss) income	(6,658)														(6,658)
Total comprehensive loss	(44)																	(44)
Balance at Jun. 30, 2018	(13,090)				$ 0					$ (51)	311,302				(324,305)			(36)
Balance (in shares) at Jun. 30, 2018					1,333					(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense for issuance of restricted stock	116										116
Compensation expense for issuance of restricted stock (in shares)					86
Sale of common stock, net of expenses	7,067										7,067
Sale of common stock, net of expenses (in shares)					6,669
Cashless exercise of warrants (in shares)					50
Issuance of pre-funded warrants	520										520
Fair value of warrants issued with convertible notes	5,007										5,007
Fair value of warrants reclassified from liability to equity	(4,210)										(4,210)
Fair value of beneficial conversion feature of convertible note	44										44
Net (loss) income	(8,880)														(8,880)
Foreign currency translation	105
Total comprehensive loss	141																	141
Balance at Sep. 30, 2018	(4,865)				$ 0					$ (51)	328,266				(333,185)			105
Balance (in shares) at Sep. 30, 2018					8,138					(1)
Balance at Dec. 31, 2018	(14,939)				$ 0					$ 0	329,065				(344,054)			50
Balance (in shares) at Dec. 31, 2018					14,715	101
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense for issuance of stock options	54										54
Compensation expense for issuance of restricted stock	4										4
Compensation expense for issuance of restricted stock (in shares)					20
Exercise of Pre-Funded Series D Warrants																					$ (41)
Exercise of pre-funded Series D Warrants (in shares)																				5,885
Issuance of Preferred Stock		$ 150										$ 150
Issuance of Preferred Stock (in shares)							15
Net (loss) income	(7,894)														(7,894)
Retirement of Series D Preferred Stock	(1,160)										(1,160)
Retirement of Series D Preferred Stock (in Shares)						(116)
Total comprehensive loss	7																	7
Balance at Mar. 31, 2019	(23,778)				$ 0						328,113				(351,948)			57
Balance (in shares) at Mar. 31, 2019					20,620
Balance at Dec. 31, 2018	$ (14,939)				$ 0					$ 0	329,065				(344,054)			50
Balance (in shares) at Dec. 31, 2018					14,715	101
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exchange of warrants for common stock (in shares)	82,521
Net (loss) income	$ (21,371)
Foreign currency translation	39
Balance at Sep. 30, 2019	(18,825)				$ 0						364,750				(383,664)			89
Balance (in shares) at Sep. 30, 2019					26,112	42,082
Balance at Mar. 31, 2019	(23,778)				$ 0						328,113				(351,948)			57
Balance (in shares) at Mar. 31, 2019					20,620
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense for issuance of stock options	75										75
Exercise of Pre-Funded Series D Warrants																			$ (1)		$ (39)
Exercise of pre-funded Series D Warrants (in shares)																				5,400
Exchange of warrants for common stock	14										14
Exchange of warrants for common stock (in shares)					92
Net (loss) income	(5,959)														(5,959)
Total comprehensive loss	(80)																	(80)
Balance at Jun. 30, 2019	(29,729)				$ 0						328,201				(357,907)			(23)
Balance (in shares) at Jun. 30, 2019					26,112
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense for issuance of stock options	70										70
Fair value of warrants issued	(20,844)										(20,844)
Issuance of Preferred Stock			$ 29,575	$ 9,510									$ 42,915	$ 14,408		$ (13,340)	$ (4,898)
Issuance of Preferred Stock (in shares)								32,572	9,510
Net (loss) income	(7,519)														(7,519)
Foreign currency translation	89
Total comprehensive loss	112																	112
Balance at Sep. 30, 2019	$ (18,825)				$ 0						$ 364,750				$ (383,664)			$ 89
Balance (in shares) at Sep. 30, 2019					26,112	42,082

Net Loss per Common Share (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Earnings Per Share [Abstract]

Calculation of net loss and number of shares used to compute basic and diluted earnings per share


	Three months ended September 30,						Nine months ended September 30,
(in thousands, except share data)	2019			2018			2019			2018
Net (loss) income—basic	$	(7,519	)	$	(8,880	)	$	(21,371	)	$	(8,353	)
Preferred stock dividends		(18,238	)		—			(18,238	)		—
Adjustment for gain on warrant income		—			(13	)		—			(534	)

Net loss—diluted	$	(25,757	)	$	(8,893	)	$	(39,609	)	$	(8,887	)
Weighted average shares outstanding—basic*		26,112			51,229			23,095			19,841

Weighted average shares outstanding—diluted*		26,112			51,229			23,095			19,841

Net loss per share—basic*	$	(287.00	)	$	(175.00	)	$	(924.00	)	$	(420.00	)
Net loss per share—diluted*	$	(987.00	)	$	(175.00	)	$	(1,715.00	)	$	(448.00	)

reflects a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018 and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

The calculation of net loss and the number of shares used to compute basic and diluted earnings per share for the years ended December 31, 2018 and 2017:


	December 31,
(in thousands, except share data)	2018			2017
Net loss—basic	$	(19,222	)	$	(45,117	)
Preferred stock dividends		—			(527	)

Net loss—diluted	$	(19,222	)	$	(45,644	)

Weighted average shares outstanding—basic		38,151			21

Weighted average shares outstanding—diluted		38,151			21

Net loss per share—basic	$	(504.00	)	$	(2,275,000	)
Net loss per share—diluted	$	(504.00	)	$	(2,275,000	)

Anti-dilutive securities excluded from the computation of earnings per share

The following potentially dilutive securities were excluded from the computation of earnings per share as of September 30, 2019 and 2018 because their effects would be anti-dilutive:


	September 30,
	2019		2018
Stock options		1,643		—
Common stock warrants—equity		—		6,005
Common stock warrants—liability		1,001,963		1,429
Assumed conversion of Series E and E-1 Preferred Stock		1,001,963		—
Assumed conversion of convertible notes		31,747		8,057

Total		2,037,316		15,491

Shares excluded from the computation of diluted earnings per share:


	2018		2017
Common stock warrants—equity		6,005		21
Common stock warrants—liability		271		—
Assumed conversion of convertible notes		3,681		—

Total		9,957		21

Inventories (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories consist of the following:


(in thousands)	September 30, 2019		December 31, 2018
Raw materials	$	351	$	358
Work-in-process		350		500
Finished goods		35		—

Total inventories	$	736	$	858

Inventories consist of:


(in thousands)	December 31, 2018		December 31, 2017
Raw materials	$	358	$	298
Work-in-process		500		721
Finished goods		—		229

Total Inventory	$	858	$	1,248

Subsequent Events - Additional Information (Details)								1 Months Ended		12 Months Ended
Subsequent Events - Additional Information (Details)	Dec. 24, 2019 $ / shares	Oct. 22, 2019 $ / shares	Sep. 17, 2019 $ / shares	Mar. 29, 2019 USD ($)	Mar. 29, 2019 USD ($)	May 02, 2018	Nov. 06, 2017	Nov. 14, 2019 shares	May 23, 2019 USD ($)	Dec. 31, 2017 $ / shares shares	Sep. 30, 2019 $ / shares	Jun. 06, 2019 USD ($) shares	Jan. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares
Subsequent Event [Line Items]
Debt instrument, principal face amount														$ 4,500,000
Common stock par value per share \| $ / shares			$ 0.01							$ 0.01	$ 0.01			$ 0.01
Pre-Funded Series D Warrants [Member]
Subsequent Event [Line Items]
Number of common shares issuable on cancellation of warrants \| shares												100,000
Series D Warrants [Member]
Subsequent Event [Line Items]
Number of common shares issuable on cancellation of warrants \| shares												5,605
Series D Preferred Shares [Member]
Subsequent Event [Line Items]
Preferred stock, stated value				$ 1,160,000	$ 1,160,000
Issuance of senior secured promissory note in exchange of preferred stock				$ 1,560,000	$ 1,560,000
Interest rate on promissory note				8.00%	8.00%
Maturity date				Apr. 01, 2020
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock subscription price per share \| $ / shares													$ 1,225
Interest rate on promissory note									8.00%			8.00%
Aggregate borrowed amount									$ 3,300,000
Debt instrument, principal face amount									$ 3,300,000			$ 2,000,000
Maturity period									6 months
Common stock par value per share \| $ / shares		$ 0.01
Subsequent Event [Member] \| Pre-Funded Series D Warrants [Member]
Subsequent Event [Line Items]
Number of common shares issuable on cancellation of warrants \| shares													11,285
Number of warrants available for cancellation \| shares												100,000
Subsequent Event [Member] \| Series D Warrants [Member]
Subsequent Event [Line Items]
Number of warrants available for cancellation \| shares												5,605
Subsequent Event [Member] \| Series D Preferred Shares [Member]
Subsequent Event [Line Items]
Preferred stock, stated value				$ 1,160,000	$ 1,160,000
Proceeds from exchanage of preferred stock					400,000
Issuance of senior secured promissory note in exchange of preferred stock				$ 1,560,000	$ 1,560,000
Interest rate on promissory note				8.00%	8.00%
Maturity date					Apr. 01, 2020
Subsequent Event [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Common stock subscription price													$ 50,000,000
Common Stock [Member]
Subsequent Event [Line Items]
Reverse stock split ratio			0.01			0.002	0.0029
Issuance of common stock and rights for payments made in shares on convertible notes payable (in shares) \| shares										375
Common Stock [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Reverse stock split ratio			0.0008
Common Stock [Member] \| Minimum [Member]
Subsequent Event [Line Items]
Reverse stock split ratio			0.02
Common Stock [Member] \| Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock par value per share \| $ / shares	$ 0.01
Reverse stock split ratio	0.0014	0.01
Common Stock [Member] \| Subsequent Event [Member] \| Series E and E1 Preferred Stock [Member]
Subsequent Event [Line Items]
Issuance of common stock and rights for payments made in shares on convertible notes payable (in shares) \| shares								3,700,000

Convertible Notes Payable - Additional Information (Details) - USD ($)	1 Months Ended			3 Months Ended	9 Months Ended		12 Months Ended
	Aug. 31, 2018	Jul. 31, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Sep. 21, 2018	Dec. 31, 2016
Debt Instrument [Line Items]
Debt instrument, principal face amount							$ 4,500,000
Debt discount on senior notes							2,500,000
Loss on issuance of financial instrument				$ 1,714,000	$ 1,721,000	$ 2,826,000	2,826,000	$ 0
Fair value of warrants being reclassified from liability to equity					11,000		4,210,000
Loss on debt extinguishment					$ 0	$ 1,123,000	0	$ (9,613,000)
Notes payable maturity amount							$ 2,000,000
Minimum [Member]
Debt Instrument [Line Items]
Exercise price of warrants				$ 7.00	$ 7.00		$ 7.00	$ 857,500		$ 197,225,000
Maximum [Member]
Debt Instrument [Line Items]
Exercise price of warrants				$ 42.00	$ 42.00		7,000	$ 13,798,400,000		$ 13,798,400,000
June 2018 Series D Warrants [Member]
Debt Instrument [Line Items]
Number of common shares issuable on cancellation of warrants			6,005
Warrants expiration period			5 years
Warrants value			$ 5,100,000
Debt discount on senior notes			2,300,000
Loss on issuance of financial instrument			$ 2,800,000
June 2018 Series D Warrants [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Exercise price of warrants			$ 1,225
June 2018 Series D Warrants [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Exercise price of warrants			$ 2,800
June 2018 Pre-Funded Series D Warrants [Member]
Debt Instrument [Line Items]
Number of common shares issuable on cancellation of warrants	31,724		100,000
Exercise price of warrants			$ 7.00
Warrants expiration period			5 years
Warrants exercisable period		Jul. 20, 2018
Fair value of warrants being reclassified from liability to equity		$ 4,200,000
June 2018 Pre-Funded Series D Warrants [Member] \| Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Number of common shares issuable on cancellation of warrants			18,506
June Two Thousand Eighteen and July Two Thousand Eighteen Notes [Member]
Debt Instrument [Line Items]
Debt instrument, conversion price	$ 1,225
Percentage of subsequent financings used to repayment of notes payable	50.00%
Minimum percentage of change in cash flows	10.00%
Loss on debt extinguishment	$ 1,100,000
July Two Thousand Eighteen Pre Funded Series D Warrants
Debt Instrument [Line Items]
Number of common shares issuable on cancellation of warrants	22,640
July Two Thousand Eighteen Pre Funded Series D Warrants \| Second Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Number of common shares issuable on cancellation of warrants		13,207
Senior Secured Convertible Notes
Debt Instrument [Line Items]
Interest rate									8.00%
Debt instrument, principal face amount									$ 9,400,000
Debt instrument, conversion price							$ 1,225
Debt instrument maturity start date					Dec. 31, 2018		Dec. 31, 2018
Debt instrument maturity end date					Mar. 31, 2021		Mar. 31, 2021
August 2018 Convertible Note [Member]
Debt Instrument [Line Items]
Notes payable maturity amount	$ 2,500

Restructuring Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring And Related Activities [Abstract]

Schedule of restructuring and related costs

The following table provides the year-to-date activity of the Company’s restructuring reserves as of December 31, 2018:


(in thousands)	Lease Liability
Reserve balance at December 31, 2017	$	604
Charges		—
Payments/Utilizations		(208	)

Reserve balance at December 31, 2018	$	396

Summary of Significant Accounting Policies - Summary of Reconciliation of Weighted Average Shares Outstanding Calculation (Details) - shares

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Weighted average shares issued

3,913

Weighted average pre-funded warrants

34,238

Weighted average shares outstanding

^[1]

38,151

[1]	reflects a one-for-three hundred and fifty (1:350) reverse stock split effected on November 6, 2017, a one-for-five hundred (1:500) reverse stock split effected on May 2, 2018, and a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.

Derivative Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Derivative Instruments Liabilities [Member] - Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Liabilities [Abstract]
Total Liabilities	$ 20,410	$ 33	$ 560
Level 3 [Member]
Liabilities [Abstract]
Total Liabilities	$ 20,410	$ 33	$ 560

Stockholders' Equity - Share-Based Compensation - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	May 02, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant					0
Unrecognized compensation expense related to non-vested share-based compensation awards	$ 100,000		$ 100,000
Cost expected to be recognized over weighted average period			3 months 18 days
Share-based compensation (Income) expense	$ 70,000	$ 116,000	$ 203,000	$ (5,000)
2019 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant	502		502
2019 Equity Incentive Plan [Member] \| Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares reserved for issuance	1,500,000		1,500,000
2019 Equity Incentive Plan [Member] \| Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options, exercise price of common stock granted as percentage of fair value on the date of grant			100.00%

Commitments - Additional Information (Details)			1 Months Ended		12 Months Ended
Commitments - Additional Information (Details)	Apr. 18, 2019 USD ($)	Jul. 27, 2018 USD ($)	Jan. 31, 2019 USD ($) ft²	Sep. 30, 2018 USD ($) ft²	Dec. 31, 2018 USD ($) ft²	Dec. 31, 2017 USD ($)	May 09, 2018 USD ($)
Operating Leased Assets [Line Items]
Rent expense, net of receipts under the terms of subleases					$ 600,000	$ 600,000
Outstanding balance to vendor							$ 2,100,000
Minimum [Member] \| Securities Purchase Agreement [Member] \| Hudson Bay [Member]
Operating Leased Assets [Line Items]
Claims for monetary damages		$ 1,000,000
Subsequent Event [Member] \| Settlement Agreement [Member]
Operating Leased Assets [Line Items]
Litigation settlement agreement date	April 18, 2019
Litigation settlement, agreed to pay amount to defendants	$ 400,000
Subsequent Event [Member] \| Settlement Agreement [Member] \| Maximum [Member]
Operating Leased Assets [Line Items]
Settlement fees	$ 50,000
Office Space at 810 Seventh Avenue, New York, NY [Member]
Operating Leased Assets [Line Items]
Square footage of office space (in square feet) \| ft²					8,629
Expansion option, additional square footage of office space (in square feet) \| ft²					8,629
Letter of credit [Abstract]
Minimum letter of credit amount required to be maintained under lease agreement					$ 900,000
Expiration date of letter of credit					Feb. 28, 2021
Office Space in New York, NY, Lease Amendment [Member]
Operating Leased Assets [Line Items]
Additional square footage of office space leased under exercise of option right (in square feet) \| ft²					8,629
Lease expiration date					Mar. 31, 2021
Office Space in New York, NY, Initial Lease and Lease Amendment [Member] \| Year 4 [Member]
Operating Leased Assets [Line Items]
Annual base rent					$ 1,000,000
Office Space in New York, NY, Initial Lease and Lease Amendment [Member] \| Year 5 [Member]
Operating Leased Assets [Line Items]
Annual base rent					1,000,000
Office Space in New York, NY, Initial Lease and Lease Amendment [Member] \| Years Thereafter [Member]
Operating Leased Assets [Line Items]
Annual base rent					$ 1,200,000
Delcath's European Headquarters Lease Agreement [Member]
Operating Leased Assets [Line Items]
Square footage of office space (in square feet) \| ft²					19,200
Annual base rent					$ 200,000
Operating lease term					10 years
Office Space At 1633 Broadway, New York, NY [Member]
Operating Leased Assets [Line Items]
Square footage of office space (in square feet) \| ft²				6,877
Annual base rent				$ 500,000
Letter of credit [Abstract]
Minimum letter of credit amount required to be maintained under lease agreement					$ 100,000
Expiration date of letter of credit					Feb. 28, 2021
Park Road Lease Agreement [Member]
Operating Leased Assets [Line Items]
Lease expiration date					Nov. 30, 2020
Operating lease term					2 years
Park Road Lease Agreement [Member] \| Subsequent Event [Member]
Operating Leased Assets [Line Items]
Square footage of office space (in square feet) \| ft²			6,000
Annual base rent			$ 50,000

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Summary of Operating and Financing Leases

The following table summarizes the Company’s operating and financing leases as of and for the nine months ended September 30, 2019:


*(in thousands)*	U.S.			Ireland			Total
Lease cost
Operating lease cost	$	592		$	160		$	752
Financing lease cost		32			—			32
Sublease income		(215	)		(133	)		(348	)

Total	$	409		$	27			436

Other information
Operating cash flows out from operating leases		(634	)		(160	)		(794	)
Operating cash flows in from operating leases		215			133			348
Operating cash flows from financing leases		(235	)		—			(35	)
Right-of-use assets exchanged for new operating lease liabilities		874			—			874
Weighted average remaining lease term		1.4			1.8
Weighted average discount rate—operating leases		8	%		8	%

Schedule of Maturity of Operating Leases Excluding Short-Term Leases

Maturities of the Company’s operating leases, excluding short-term leases, are as follows:


*(in thousands)*	U.S.			Ireland			Total
Nine months ended December 31, 2019	$	129		$	51		$	180
Year ended December 31, 2020		498			203			701
Year ended December 31, 2021		79			119			198

Total		706			373			1,079
Less present value discount		(40	)		(27	)		(67	)

Operating lease liabilities included in the condensed consolidated balance sheets at September 30, 2019	$	666		$	346		$	1,012

Prepaid Expenses and Other Current Assets - Additional Information (Details)	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Prepaid Expense And Other Assets Current [Abstract]
Maximum percentage of prepaid expenses and other current assets (in hundredths)	5.00%	5.00%	5.00%

Stockholders' Equity - Preferred Stock Issuances - Additional Information (Details) - USD ($)						3 Months Ended	9 Months Ended		12 Months Ended
	Aug. 19, 2019	Jul. 11, 2019	Mar. 29, 2019	Mar. 29, 2019	Nov. 06, 2018	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Nov. 05, 2018
Stockholders Equity Note [Line Items]
Preferred stock, par value (in dollars per share)						$ 0.01	$ 0.01		$ 0.01	$ 0.01
Fair value of warrants issued							$ 20,844,000	$ 28,539,000	$ 28,539,000	$ 16,953,000
Preferred stock, aggregate stated value						$ 0	$ 0		$ 0	$ 0
2019 Warrants [Member]
Stockholders Equity Note [Line Items]
Fair value of warrants issued						$ 20,800,000
Series E Convertible Preferred Stock [Member] \| July 2019 Private Placement [Member]
Stockholders Equity Note [Line Items]
Proceeds from private placement, gross		$ 20,000,000
Series E Convertible Preferred Stock [Member] \| July 2019 Private Placement [Member] \| Securities Purchase Agreement [Member]
Stockholders Equity Note [Line Items]
Preferred stock, shares issued		20,000
Preferred stock, par value (in dollars per share)		$ 0.01
Shares issued, price per share		$ 1,000
Series E-1 Convertible Preferred Stock [Member]
Stockholders Equity Note [Line Items]
Conversion of stock, description							The Conversion Price and the Exercise Price may, upon each of (i) the third trading day following the date that the Company effects a reverse stock split, (ii) the date that the initial registration statement to be filed pursuant to the Registration Rights Agreement (as further discussed below) is declared effective by the United States Securities and Exchange Commission (“SEC”), and (iii) in the event that all of the registrable securities (as defined in the Registration Rights Agreement) are not then registered on an effective registration statement, the date that all of the shares underlying the Preferred Stock and Warrants may be sold pursuant to Rule 144, be reduced, and only reduced, to equal the lesser of (x) the then effective Conversion Price or Exercise Price, as applicable, and (y) 90% of the average of the five daily volume weighted average prices of the Common Stock immediately prior to such dates.
Series E-1 Convertible Preferred Stock [Member] \| August 2019 Private Placement [Member]
Stockholders Equity Note [Line Items]
Proceeds from private placement, gross	$ 9,500,000
Series E-1 Convertible Preferred Stock [Member] \| August 2019 Private Placement [Member] \| Securities Purchase Agreement [Member]
Stockholders Equity Note [Line Items]
Preferred stock, shares issued	9,510
Preferred stock, par value (in dollars per share)	$ 0.01
Shares issued, price per share	$ 1,000
Preferred Stock [Member]
Stockholders Equity Note [Line Items]
Debt instrument, conversion price						$ 23.04	$ 23.04
Exercise price of warrants						$ 23.04	$ 23.04
Warrant exercisable term						5 years
Net proceeds from issuance of preferred stock						$ 26,500,000
Beneficial conversion feature						18,300,000
Series E Preferred Stock and Related Warrants [Member]
Stockholders Equity Note [Line Items]
Debt and warrants exchanged for preferred stock						$ 11,800,000
Number of preferred stock and warrants issued upon conversion						11,500
Value of accounts payable exchanged						$ 100,000
Number of shares issued upon exchange of accounts payable						149
Number of shares issued upon exchange of investor waiver rights						923
Series D Preferred Shares [Member]
Stockholders Equity Note [Line Items]
Preferred stock, par value (in dollars per share)											$ 0.01
Preferred stock, aggregate stated value			$ 1,160,000	$ 1,160,000
Proceeds from exchange of senior secured promissory note				400,000
Issuance of senior secured promissory note in exchange of preferred stock			1,560,000	1,560,000
Series D Preferred Shares [Member] \| Common Stock [Member]
Stockholders Equity Note [Line Items]
Number of preferred stock and warrants issued upon conversion					2,366
Series D Preferred Shares [Member] \| Securities Purchase Agreement [Member]
Stockholders Equity Note [Line Items]
Preferred stock, shares issued					101
Subsequent Event [Member] \| Series D Preferred Shares [Member]
Stockholders Equity Note [Line Items]
Preferred stock, aggregate stated value			1,160,000	1,160,000
Proceeds from exchange of senior secured promissory note			400,000
Issuance of senior secured promissory note in exchange of preferred stock			1,560,000	1,560,000
Preferred stock, value outstanding			$ 0	$ 0

Restricted Cash

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Restricted Cash [Abstract]

Restricted Cash

(2)

RESTRICTED CASH

Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded in Restricted Cash on the balance sheets. Restricted cash does not include required minimum balances.

Cash, cash equivalents, and restricted cash balances were as follows:


(in thousands)	September 30, 2019		December 31, 2018
Cash and cash equivalents	$	15,334	$	2,516
Letters of credit		131		1,012
Security for credit cards		50		50

Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$	15,515	$	3,578

(4)

RESTRICTED CASH

Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded in Restricted Cash on the balance sheet. Restricted cash does not include required minimum balances.


(in thousands)	December 31, 2018		December 31, 2017
Cash and cash equivalents	$	2,516	$	3,999
Convertible Notes		—		238
Letters of credit		1,012		1,012
Security for credit cards		50		75

Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	3,578	$	5,324

Outstanding Debt (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Summary of the Notes by Maturity Dates

The following tables provide a summary of the various notes issued at September 30, 2019 and December 31, 2018:


*(in millions)*	Conversion price		Current interest rate			Principal
Long term convertible notes payable
8.0% July 2019 Notes	$	1,500		8	%	$	2.0


*(in millions)*	Interest rate			Conversion price		Principal		Unamortized discount			Carrying value
December 4, 2018		8.0	%	$	1,225	$	1.7	$	—		$	1.7
March 1, 2019		8.0	%	$	1,225		0.6		(0.5	)		0.1
March 21, 2019		8.0	%	$	1,225		0.4		(0.2	)		0.2
December 4, 2019		8.0	%	$	1,225		0.9		(0.9	)		—
March 1, 2020		8.0	%	$	1,225		0.8		(0.8	)		—
March 21, 2020		8.0	%	$	1,225		0.1		(0.1	)		—

Balance at December 31, 2018						$	4.5	$	(2.5	)	$	2.0

The following table provides a summary of the Notes by their maturity dates (absent provisions of default):


*(in millions)*	Interest rate			Conversion price		Principal		Unamortized Discount			Carrying value
December 4, 2018		8.0	%	$	1,225	$	1.7	$	—		$	1.7
March 1, 2019		8.0	%		1,225		0.6		(0.5	)		0.1
March 21, 2019		8.0	%		1,225		0.4		(0.2	)		0.2
December 4, 2019		8.0	%		1,225		0.9		(0.9	)		—
March 1, 2020		8.0	%		1,225		0.8		(0.8	)		—
March 21, 2020		8.0	%		1,225		0.1		(0.1	)		—

Total Convertible Notes Payable, net						$	4.5	$	(2.5	)	$	2.0

Fair Value Measurements - Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Roll Forward]
Beginning balance	$ 33	$ 560	$ 18,751
Total change in the liability included in earnings	(456)	(19,706)	(15,103)
Reclass from liability to equity	(11)	(4,210)
Fair value of warrants issued	20,844	23,533	16,953
Ending balance	$ 20,410	$ 33	$ 560

Stockholders' Equity - Warrant Exchange - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended	9 Months Ended		12 Months Ended
	Apr. 30, 2019	Dec. 31, 2018	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Stockholders Equity Note [Line Items]
Loss in exchange of common stock for warrants			$ 1,714,000	$ 1,721,000	$ 2,826,000	$ 2,826,000	$ 0
Exchange Agreement [Member]
Stockholders Equity Note [Line Items]
Issuance of common stock and rights for payments made in shares on convertible notes payable (in shares)	92	1,179
Loss in exchange of common stock for warrants	$ 6,000

Summary of Significant Accounting Policies (Policies)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Cash Equivalents and Concentrations of Credit Risk

Liquidity

Liquidity

Use of Estimates

Use of Estimates

Cash Equivalents and Concentrations of Credit Risk

Restricted Cash

Restricted Cash

Accounts Receivable

Accounts Receivable

Inventories

Inventories

Property, Plant and Equipment

Property, Plant and Equipment

Derivative Financial Instruments

Derivative Financial Instruments

Derivative Instrument Liability

Fair Value Measurements

Fair Value Measurements

•

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.

•

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.

Revenue Recognition

Revenue Recognition

Deferred Revenue

Deferred Revenue

Selling, General and Administrative

Selling, General and Administrative

Research and Development

Research and Development

Stock Based Compensation

Stock Based Compensation

Income Taxes

Income Taxes

Net Loss per Common Share

Net Loss per Common Share

The calculation of net loss and the number of shares used to compute basic and diluted earnings per share for the years ended December 31, 2018 and 2017:


	December 31,
(in thousands, except share data)	2018			2017
Net loss—basic	$	(19,222	)	$	(45,117	)
Preferred stock dividends		—			(527	)

Net loss—diluted	$	(19,222	)	$	(45,644	)

Weighted average shares outstanding—basic		38,151			21

Weighted average shares outstanding—diluted		38,151			21

Net loss per share—basic	$	(504.00	)	$	(2,275,000	)
Net loss per share—diluted	$	(504.00	)	$	(2,275,00	)

In the third quarter of 2017, the Company issued Series B Preferred Shares. A portion of the redemption price of the Series B Preferred Shares was accounted for as a deemed dividend.


	December 31, 2018
Weighted average shares issued		3,913
Weighted average pre-funded warrants		34,238

Weighted average shares outstanding		38,151

Shares excluded from the computation of diluted earnings per share:


	2018		2017
Common stock warrants—equity		6,005		21
Common stock warrants—liability		271		—
Assumed conversion of convertible notes		3,681		—

Total		9,957		21

Segment Information

Segment Information

Foreign Currency and Currency Translation

Foreign Currency and Currency Translation

Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

SEC Disclosure Update and Simplification

Recent Accounting Standards to be Adopted

Liquidity and Operating Matters

Liquidity and Operating Matters

Basis of Presentation

Basis of Presentation

Prepaid Expenses and Other Current Assets

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Prepaid Expenses And Other Current Assets

(4)

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:


(in thousands)	September 30, 2019		December 31, 2018
Clinical trial expenses	$	500	$	—
Insurance premiums		54		140
Security deposit		50		51
Income tax and VAT receivable		33		579
Other¹		227		128

Total prepaid expenses and other current assets	$	864	$	898

(6)

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets include the following:


(in thousands)	December 31, 2018		December 31, 2017
Insurance premiums	$	140	$	421
Financing costs		—		70
Security deposit		51		50
Income tax and VAT receivable		579		29
Other¹		128		130

Total prepaid expenses and other current assets	$	898	$	700

Other consists of various prepaid expenses and other current assets, with no individual item accounting for more than 5% at December 31, 2018 and 2017.

Convertible Notes Payable (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018