Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2018	Mar. 14, 2019	Jun. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	APVO
Entity Registrant Name	APTEVO THERAPEUTICS INC.
Entity Central Index Key	0001671584
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		42,940,219
Entity Public Float			$ 90.1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 30,635	$ 7,095
Short-term investments		73,688
Accounts receivable	5,220	2,141
Inventories	1,785	1,028
Prepaid expenses	6,907	4,022
Other current assets	4,142	6,710
Restricted cash		400
Total current assets	48,689	95,084
Restricted cash, net of current portion	7,448	10,000
Property and equipment, net	5,202	5,843
Intangible assets, net	5,250	6,080
Other assets	905
Total assets	67,494	117,007
Current liabilities:
Accounts payable and other accrued liabilities	11,671	7,350
Accrued compensation	3,898	4,626
Sales rebates and discounts payable	1,245	623
Current portion of long-term debt		3,333
Other current liabilities	796	2,578
Total current liabilities	17,610	18,510
Long-term debt, net	19,278	15,728
Other liabilities	200	734
Total liabilities	37,088	34,972
Stockholders' equity:
Preferred stock: $0.001 par value; 15,000,000 shares authorized, zero shares issued or outstanding
Common stock: $0.001 par value; 500,000,000 shares authorized; 22,808,416 and 21,605,716 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively	23	22
Additional paid-in capital	157,791	155,837
Accumulated other comprehensive loss		(105)
Accumulated deficit	(127,408)	(73,719)
Total stockholders' equity	30,406	82,035
Total liabilities and stockholders' equity	$ 67,494	$ 117,007

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	22,808,416	21,605,716
Common stock, shares outstanding	22,808,416	21,605,716

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Total revenues	$ 23,067	$ 14,658
Costs and expenses:
Research and development	35,385	29,021
Selling, general and administrative	28,133	34,576
Loss from operations	(51,665)	(53,949)
Other expense:
Other expense, net	(2,024)	(1,944)
Loss before income taxes	(53,689)	(55,893)
Benefit from income taxes		23,301
Net loss from continuing operations	(53,689)	(32,592)
Discontinued operations (Note 2):
Income from discontinued operations, before income taxes		62,864
Income tax expense		(23,299)
Income from discontinued operations		39,565
Net income (loss)	$ (53,689)	$ 6,973
Basic and diluted net income (loss) per share:
Net loss from continuing operations	$ (2.39)	$ (1.53)
Net income from discontinued operations		1.86
Net income (loss)	$ (2.39)	$ 0.33
Weighted-average shares used to compute per share calculation	22,500,053	21,335,157
Product sales
Revenues:
Total revenues	$ 23,067	$ 10,949
Costs and expenses:
Cost of product sales	$ 11,214	5,010
Collaborations
Revenues:
Total revenues		$ 3,709

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (53,689)	$ 6,973
Other comprehensive loss:
Unrealized gain (losses) on available-for-sale investments, net	105	(72)
Total comprehensive (loss) income	$ (53,584)	$ 6,901

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating Activities
Net income (loss)	$ (53,689)	$ 6,973
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation	2,140	4,884
Depreciation and amortization	2,390	3,127
Non-cash interest expense and other	988	636
Gain on sale of Hyperimmune Business		(52,697)
Changes in operating assets and liabilities:
Accounts receivable	(3,079)	(1,834)
Inventories	(757)	(567)
Prepaid expenses and other current assets	(1,315)	(1,628)
Accounts payable, accrued compensation and other liabilities	1,279	195
Sales rebates and discounts	621	345
Assets and liabilities held for sale and amount due to Saol		2,700
Deferred revenue		(3,707)
Net cash used in operating activities	(51,422)	(41,573)
Investing Activities
Proceeds from the maturity of investments	90,243	70,730
Cash proceeds from sale of Hyperimmune Business	65	59,763
Purchases of property and equipment	(976)	(1,402)
Purchases of investments	(16,535)	(99,633)
Net cash provided by investing activities	72,797	29,458
Financing Activities
Common stock issued upon exercise of stock options, and under the ATM arrangement, net	623	442
Payment of tax liability for vested equity awards	(808)	(758)
Fees paid to lender in connection with amendment of debt agreement	(602)	(150)
Settlement of contribution receivable from former parent		20,000
Net cash (used in) provided by financing activities	(787)	19,534
Increase in cash, cash equivalents, and restricted cash	20,588	7,419
Cash, cash equivalents, and restricted cash at beginning of period	17,495	10,076
Cash, cash equivalents, and restricted cash at end of period	38,083	17,495
Supplemental disclosures:
Cash paid for interest	$ 1,930	$ 1,778

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Contribution Receivable from Former Parent	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2016	$ 50,566	$ 20	$ 151,271	$ (80,692)	$ (20,000)	$ (33)
Balance (in shares) at Dec. 31, 2016		20,271,737
Unrealized (losses) gain on available-for-sale investments	(72)					(72)
Transfers from former parent	20,000				$ 20,000
Common stock issued upon exercise of stock options	440		440
Common stock issued upon exercise of stock options (in shares)		174,763
Common stock issued upon vesting of restricted stock units	(756)	$ 2	(758)
Common stock issued upon vesting of restricted stock units (in shares)		1,159,216
Stock-based compensation	4,884		4,884
Net income (loss) for the period	6,973			6,973
Balance at Dec. 31, 2017	82,035	$ 22	155,837	(73,719)		(105)
Balance (in shares) at Dec. 31, 2017		21,605,716
Unrealized (losses) gain on available-for-sale investments	105					$ 105
Common stock issued uponexercise of stock options, sales under ATM arrangement, and issuance of commitment shares	623	$ 1	622
Common stock issued upon exercise of stock options, sales under ATM arrangement, and issuance of commitment shares (in shares)		386,866
Common stock issued upon exercise of stock options (in shares)		373,601
Common stock issued upon vesting of restricted stock units	(808)		(808)
Common stock issued upon vesting of restricted stock units (in shares)		815,834
Stock-based compensation	2,140		2,140
Net income (loss) for the period	(53,689)			(53,689)
Balance at Dec. 31, 2018	$ 30,406	$ 23	$ 157,791	$ (127,408)
Balance (in shares) at Dec. 31, 2018		22,808,416

Nature of Business and Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Nature of Business and Significant Accounting Policies

Note 1. Nature of Business and Significant Accounting Policies

Organization and Liquidity

Aptevo Therapeutics Inc. (Aptevo, we, us, or the Company) is a biotechnology company focused on novel oncology (cancer) and hematology (blood disease) therapeutics to meaningfully improve patients’ lives. Our core technology is the ADAPTIR (modular protein technology) platform. We currently have one revenue-generating product in the area of hematology, IXINITY, as well as various investigational stage product candidates in the areas of immuno-oncology and autoimmune and inflammatory diseases.

We are currently trading on the Nasdaq Global Market under the symbol “APVO.”

On September 28, 2017, Aptevo completed the sale of its hyperimmune business which consisted of the following products: WinRho^® SDF for autoimmune platelet disorder and hemolytic disease of the newborn; HepaGam B^® for the prevention of Hepatitis B following liver transplantation and for treatment following hepatitis B exposure; and VARIZIG^® for treatment following exposure to varicella zoster virus for individuals with compromised immune systems (Hyperimmune Business). The Hyperimmune Business met all the conditions to be classified as a discontinued operation since the sale of Hyperimmune Business represented a strategic shift that will have a major effect on the Company’s operations and financial results. Aptevo will not have further significant involvement in the operations of the discontinued Hyperimmune Business. The operating results of the Hyperimmune Business are reported as income from discontinued operations, both pre-tax and net of tax, in the consolidated statements of operations for the nine months ended September 30, 2017 reporting period. See Note 2 - Sale of Hyperimmune Business for additional information.

In accordance with Financial Accounting Standards Board, or the FASB, Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. As of March 18, 2019, there are not such conditions or events as we expect our existing cash and cash equivalents will be sufficient to fund our operations through March 18, 2020.

In March 2019, we completed a public offering of common stock and warrants. We received gross proceeds of $22.0 million, before underwriting fees, legal fees, and other expenses, on March 13, 2019 upon the issuance of 19,850,000 shares of common stock, warrants to purchase 19,850,000 shares of common stock at an exercise price of $1.30 per share, pre-funded warrants to purchase 2,150,000 shares of our common stock with an exercise price of $0.01 per share, and warrants to purchase up to 2,150,000 shares of our common stock with an exercise price of $1.30 per share. If fully exercised in the future, additional proceeds to be received upon exercise of the warrants totals up to $28.6 million over the ten-year term of the warrants.

Our results of operations will be highly dependent on IXINITY sales unless or until we develop or partner any of our development stage product candidates, which we expect may take a number of years and is subject to significant uncertainty. If we obtain regulatory approval for one of our development stage product candidates, we expect to incur significant commercialization expenses related to sales, marketing, manufacturing and distribution, to the extent that such costs are not paid by collaborators. We do not have sufficient cash to complete the clinical development of any of our development stage product candidates and will require additional funding in order to complete the development activities required for regulatory approval of such product candidates. While we may be able to access capital under our existing equity sales agreement with Lincoln Park Financial LLC or our Equity Distribution Agreement with Piper Jaffray, if we are unable to obtain additional financing when needed, or if IXINITY revenue growth does not continue or continue at the rates we expect, we may have to delay, reduce the scope of, suspend or eliminate one or more of our research and development programs.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). These consolidated financial statements include all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial position.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

The consolidated financial statements include the accounts of the company and its wholly owned subsidiaries: Aptevo Research and Development LLC; Aptevo BioTherapeutics LLC; and Aptevo Europe Limited. All intercompany balances and transactions have been eliminated.

Significant Accounting Policies

Use of Estimates

Principles of Consolidation

Cash Equivalents

Cash equivalents are highly liquid investments with a maturity of 90 days or less at the date of purchase and include time deposits and investments in money market funds with commercial banks and financial institutions.

Restricted Cash

We have restricted cash, long-term, which includes $5.0 million related to the minimum cash covenant included in the Company’s Credit and Security Agreement (the Credit Agreement) with MidCap Financial Trust, and $2.4 million securing letters of credit.

Short-Term Investments

Short-term investments are classified as available-for-sale debt securities and are carried at fair value. Unrealized gains and losses, if any, are reported as a component of comprehensive loss. Amortization, accretion, interest and dividends, realized gains and losses and declines in value judged to be other-than-temporary are included in other income (expense). The cost of securities sold is based on the specific-identification method. Investments in securities with maturities of less than one year, or those for which management intends to use the investments to fund current operations, are included in current assets. We evaluate whether an investment is other-than-temporarily impaired based on the specific facts and circumstances. Factors that are considered in determining whether an other-than-temporary decline in value has occurred include: the market value of the security in relation to its cost basis; the financial condition of the investee; and the intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment.

Concentrations of Credit Risk

Financial instruments that potentially subject Aptevo to concentrations of credit risk consist primarily of cash and cash equivalents, certain investments and accounts receivable. Aptevo places its cash and cash equivalents with high quality financial institutions and may maintain cash balances in excess of insured limits. Management believes that the financial risks associated with its cash and cash equivalents are minimal.

Major Customers

We sell IXINITY through a limited number of customers and specialty pharmacies. Each of these wholesalers, together with entities under their common control, accounted for greater than 10% of total revenues for the years ended December 31, 2018 and 2017 and greater than 10% of accounts receivable as of December 31, 2018 and 2017 as noted below.

	2018						2017
	Percentage of Total Revenue			Percentage of Accounts Receivable			Percentage of Total Revenue			Percentage of Accounts Receivable
Customer A		72	%		70	%		83	%		73	%
Customer B		17	%		19	%		—			—
Customer C		—			—			13	%		27	%

Accounts Receivable

Aptevo records accounts receivable net of an allowance for doubtful accounts based upon its assessment of collectability, and of applicable discounts. Aptevo performs ongoing credit evaluations of its customers and generally does not require collateral. As a result of its sale of its Hyperimmune Business in September 2017, accounts receivable net of an allowance for doubtful accounts has been revised to reflect the removal of its allowance for doubtful accounts, as the prior balance solely related to the Hyperimmune Business. See Note 2, Sale of Hyperimmune Business for additional information on the divestiture.

Inventories

Inventories, are stated at the lower of cost or market with cost being determined using a moving average cost method, which approximates weighted-average cost. Average cost consists primarily of material, labor and manufacturing overhead expenses (including allocation of fixed production-overhead costs) from our third-party suppliers. Aptevo analyzes its inventory levels quarterly and writes down, in the applicable period, inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected customer demand. Aptevo also writes off, in the applicable period, the costs related to expired inventory and unsuccessful manufacturing runs.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:

Furniture and equipment	7-10 years
Software and hardware	3-5 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. Repairs and maintenance costs are expensed as incurred.

Fair Value of Financial Instruments

We measure and record cash equivalents and investment securities considered available-for-sale at fair value in the accompanying financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The carrying amounts of our short-term financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate their fair value due to their short maturities.

Product Sales, Rebates and other Discounts

Aptevo markets and sells its product through commercial wholesalers (direct customers) who purchase the product at a price referred to as the wholesale acquisition cost (WAC). Additionally, Aptevo may enter into separate agreements with indirect customers to acquire its product for a contracted price that is less than the product’s WAC. The indirect customers, such as group-purchasing organizations, physician practice-management groups and hospitals, continue to purchase Aptevo’s product from the wholesalers, but at their respective contractual prices. Per its wholesaler agreements, Aptevo guarantees to credit the wholesaler for the difference between the WAC and the indirect customers’ contracted price. This credit is referred to as a chargeback and revenues from product sales are recorded net of estimated chargebacks. Adjustments to the chargeback provisions are made periodically to reflect new facts and circumstances, therefore historical experience may not be indicative of current and/or future results.

All revenues from product sales are also recorded net of applicable allowances for sales and government rebates, special promotional programs, and discounts. These allowances are estimated based on historical payment experience, historical relationship to revenues, estimated customer inventory levels, contract terms, and actual discounts offered. In arriving at these estimates, Aptevo further utilizes information received from third parties including market data, inventory reports from major wholesalers, historical information and analysis. These estimates are subject to the inherent limitations of estimates that rely on third-party data, as certain third-party information may itself rely on estimates and reflect other limitations.

Debt Issuance Costs

Aptevo defers costs related to debt issuance and amortizes these costs to interest expense over the term of the debt, using the effective interest method. Debt issuance costs are presented in the balance sheet as a reduction of the carrying amount of the debt liability.

Revenue Recognition

Effective January 1, 2018, we adopted Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (ASC 606) on a modified retrospective basis, which required the cumulative effect of the adoption to be recognized as an adjustment to opening retained earnings in the first period of 2018. For Aptevo, there was no financial impact for the cumulative effect of this change, and therefore there was no adjustment to opening retained earnings. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaborative arrangements and financial instruments. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customers. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and identify, as a performance obligation, and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

Product Revenue, Net

Aptevo has one marketed commercial product, IXINITY, a coagulation factor IX (recombinant) therapeutic indicated in adults and children 12 years of age and older with hemophilia B for control and prevention of bleeding episodes, and management of bleeding during operations.

We sell IXINITY to a limited number of specialty distributors in the United States, collectively, our customers. These customers subsequently resell IXINITY to health care providers and patients. Revenue from product sales are recognized when the customer obtains control of the IXINITY product. Our customers provide us with a new order for every purchase of goods. This incorporates the terms and conditions of the contract, including pricing. Acceptance of the order is the point at which we are obligated to provide the product, and we have determined that each order represents a unique performance obligation. Product revenue is recorded at the amount we expect to receive, which is net of any rebates or chargebacks.

Reserves for Variable Consideration

We have identified the following fees, discounts and rebates that result in consideration being variable: chargebacks, distributor and Group Purchasing Organizations (GPO) fees, government rebates, return rights, and patient assistance. As part of determining variable consideration we noted that although the distributors are our customers, there are additional indirect customers in the distribution chain to whom we make payments. These indirect customers are not customers; however, unless a distinct good or service is provided to us, payments to these indirect customers need to be accounted for as a reduction in the transaction price, and therefore constitute an element of variable consideration, under ASC 606. Further, if material, we would also account for returns as variable consideration.

These reserves are based on the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable (if the amount is payable to the Customer) or a current liability (if the amount is payable to a party other than a Customer). Where appropriate, these estimates take into consideration a range of possible outcomes that are probability-weighted for relevant factors such as our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the contract. The amount of variable consideration that is included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from our estimates, we will adjust these estimates, which would affect net product revenue and earnings in the period such variances become known.

We have established provisions for the following types of variable consideration:

Chargebacks: We make payments to customers (in the form of credit memos) which are based on the difference between the price paid by the distributor and contracted prices paid by the authorized customers of the distributor. Specialty pharmacies and other smaller specialty distributors buy the product from the distributors at prices agreed to in contracts with us, or if they are eligible, at government established prices (PHS/Medicaid/Medicare/VA prices). When the distributor sells the product at contracted prices lower than their acquisition price, the distributor is allowed to charge the difference between their price and the contract price paid by their customer to Aptevo. We refer to this as a “Chargeback”.

These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and accounts receivable. Chargeback amounts are generally determined at the time of resale to the qualified healthcare provider by Customers, and we generally issue credits for such amounts within a few weeks of the Customer’s notification to us of the resale. Reserves for chargebacks consist of credits we expect to issue for units that remain in the distribution channel inventories at each reporting period end that we expect will be sold to qualified healthcare providers, and chargebacks that Customers have claimed but for which we have not yet issued a credit.

Distribution, Dispensing, and Data Fees: We pay fees (in the form of direct payments) to the distributors and some indirect customers for distribution and dispensing of the products and for transmission of data. Fees owed to our distributors is based on their purchases and is calculated as a direct percent of quarterly purchases. Although fees can vary from distributor to distributor, the fees associated with a specific sale is known at the time of the sale. Fees owed to GPOs are determined based on volume of indirect sales to GPS members.

Government Rebates: Certain sales by the specialty pharmacies are to qualified PHS/Medicaid/Medicare/VA and other publicly insured patients. We have contracts with these agencies, some of which require rebates for sales made under these programs. We estimate our Medicaid and Medicare rebates based upon a range of possible outcomes that are probability-weighted for the estimated payor mix. These reserves are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability that is included in accrued expenses on the consolidated balance sheet. For Medicare, we also estimate the number of patients in the prescription drug coverage gap for whom we will owe an additional liability under the Medicare Part D program. Our liability for these rebates consists of invoices received for claims from prior quarters that have not been paid or for which an invoice has not yet been received, estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but remains in the distribution channel inventories at period end.

Commercial Rebates: We currently offer the option to receive a rebate based on volume thresholds. This rebate is estimated at the time of the sale and is based on the terms of the Customer agreements. There are minimum volume requirements in order to receive this rebate, which varies per Customer.

Cash Discounts: Most customers have the option to receive a cash discount for early payment. Typically, cash discounts are two-percent of the invoice amount if the payment is made within thirty days.

Patient Assistance: Certain patients may be eligible for the IXINITY Savings Program, which provides for up to $12,000 annual benefit to assist with co-payments. Historically, this has been insignificant to our revenue as the total benefit provided since sales of IXINITY commenced in 2015 has been less than $0.1 million.

The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that we expect to receive associated with product that has been recognized as revenue, but remains in the distribution channel inventories at period end.

Returns: If product is damaged in shipment (either observable or hidden), or the incorrect number of units was shipped (for example, if the customer ordered 1 unit and 10 were shipped) these are allowable returns under our Return Policy (a component of the distributor agreements). However, as product is generally received by the distributors within 1 business day, and product damage is usually noted upon inspection, we would not recognize revenue on those shipments as part of our normal revenue recognition process. To date there has not been any such damaged product and we expect any such issues to be rare; however, if returns were to become significant a reserve estimate would be developed and accounted for as a reduction of revenue. See Note 15 – Revenue Reserves for additional information.

Collaborations

Revenue generating collaborative research and development agreements may contain one or more provisions including licensing, research services and milestone deliverables. Aptevo analyzes its multiple element revenue generating arrangements to determine whether the elements can be separated and accounted for individually as separate units of accounting. An item can generally be considered a separate unit of accounting if both of the following criteria are met: (1) the delivered item(s) has value to the customer on a standalone basis, and (2) if the arrangement includes a general right of return and delivery, the performance of the undelivered item(s) is considered probable and substantially in the control of Aptevo. Items that cannot be divided into separate units are consolidated with other units of accounting, as appropriate. Consideration to be received is allocated among the separate units based on each unit’s relative selling price and is then recognized when the appropriate revenue recognition criteria are met. Aptevo deems services to be rendered if no continuing obligation exists on the part of Aptevo.

Revenue associated with non-refundable upfront license fees that can be treated as a single unit of accounting is recognized when all ongoing obligations have been delivered. Revenue associated with non-refundable upfront license fees under arrangements where the license fees and research and development activities cannot be accounted for as separate units of accounting is deferred and recognized as revenue either on a straight-line basis over Aptevo’s continued involvement in the research and development process or based on the proportional performance of Aptevo’s expected future obligations under the contract.

Revenues from the achievement of research and development milestones, if deemed substantive, are recognized as revenue when the milestones are achieved and the milestone payments are due and collectible. Milestones are considered substantive if all of the following conditions are met: (1) the milestone is non-refundable, (2) achievement of the milestone was not reasonably assured at the inception of the arrangement, (3) substantive effort is involved to achieve the milestone and (4) the amount of the milestone payment appears reasonable in relation to the effort expended. If not deemed substantive, Aptevo recognizes such milestone as revenue on a percent of completion basis over the remaining expected term of continued involvement in the research and development process. Payments received in advance of revenue recognized are recorded as deferred revenue.

Research and Development Costs

Research and development costs are expensed as incurred. Research and development costs primarily consist of internal labor costs, fees paid to outside service providers and the costs of materials used in clinical trials and research and development. Other research and development expenses include facility, maintenance and related support expenses.

A substantial portion of Aptevo’s pre-clinical studies and all of its clinical studies have been performed by third-party CROs. The Company reviews the activities performed by the CROs each period. For pre-clinical studies, the significant factors used in estimating accruals include the percentage of work completed to date and contract milestones achieved. For clinical study expenses, the significant factors used in estimating accruals include the number of patients enrolled and services provided but not yet invoiced. The Company’s estimates are highly dependent upon the timeliness and accuracy of the data provided by its CROs regarding the status of each program and total program spending and adjustments are made when deemed necessary.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of personnel-related costs and professional fees in support of our executive, sales and marketing, business development, finance, accounting, information technology, legal and human resource functions. Other costs include facility costs not otherwise included in cost of product sales or research and development expense.

Stock-Based Compensation

Under the Financial Accounting Standards Board’s (FASB) ASC 718, Compensation—Stock Compensation, we measure and recognize compensation expense for restricted stock units (RSUs), and stock options granted to our employees and directors based on the fair value of the awards on the date of grant. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model that requires management to apply judgment and make estimates, including:

•

the expected term of the stock option award, which we calculate using the simplified method, as permitted by the SEC Staff Accounting Bulletin No. 110, Share-Based Payment, as we have insufficient historical information regarding our stock options to provide a basis for an estimate;

•

the expected volatility of our underlying common stock, which we estimate based on the historical volatility of a representative group of publicly traded biopharmaceutical companies with similar characteristics to us, and our own historical and implied future volatility;

•

the risk-free interest rate, which we based on the yield curve of U.S. Treasury securities with periods commensurate with the expected term of the options being valued;

•

the expected dividend yield, which we estimate to be zero based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends; and

•

the fair value of our common stock on the date of grant.

Stock-based compensation expense for RSUs is recognized on a straight-line basis over the vesting period of the respective award. Stock-based compensation expense for our stock options, both converted and Aptevo granted, is recognized on a straight-line basis over the vesting period of the respective award.

We have elected to estimate a forfeiture rate to calculate the stock-based compensation expense for our awards. Our forfeiture rate for the converted RSUs and options is based on an analysis of the actual forfeitures experienced by Emergent. For the RSUs and options issued by Aptevo, we have estimated a forfeiture rate of ten-percent. Since inception our actual forfeiture rate has been de minimis. We routinely evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover, and expectations of future option exercise behavior.

Income Taxes

Income taxes are accounted for using the liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and research and development tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled.

Aptevo’s ability to realize deferred tax assets depends upon future taxable income as well as the limitations discussed below. For financial reporting purposes, a deferred tax asset must be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized prior to expiration. Aptevo considers future taxable income and ongoing tax planning strategies in assessing the need for valuation allowances. In general, if Aptevo determines that it is more likely than not to realize more than the recorded amounts of net deferred tax assets in the future, Aptevo will reverse all or a portion of the valuation allowance established against its deferred tax assets, resulting in a decrease to the provision for income taxes in the period in which the determination is made. Likewise, if Aptevo determines that it is not more likely than not to realize all or part of the net deferred tax asset in the future, Aptevo will establish a valuation allowance against deferred tax assets, with an offsetting increase to the provision for income taxes, in the period in which the determination is made.

Because tax laws are complex and subject to different interpretations, significant judgment is required. As a result, Aptevo makes certain estimates and assumptions, in (1) calculating Aptevo’s income tax expense, deferred tax assets and deferred tax liabilities, (2) determining any valuation allowance recorded against deferred tax assets and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. Aptevo’s estimates and assumptions may differ significantly from tax benefits ultimately realized.

Segment Reporting

We have determined that we operate in a single segment and have one reporting unit: the discovery, development, commercialization and sale of novel oncology and hematology therapeutics.

New Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short term leases) at the commencement date. Lessor accounting under ASU 2016-02 is largely unchanged. ASU 2016-02 is effective for annual and interim periods beginning on or after December 15, 2018 and early adoption is permitted. Under ASU 2016-02, lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Lessees and lessors may not apply a full retrospective transition approach. The ASU was effective for Aptevo starting on January 1, 2019 and we will apply the practical expedients thereby continuing to account for leases that commenced before the effective date in accordance with previous GAAP. We are continuing to evaluate the impact of the application of this ASU and believe it will have a material impact on our consolidated financial statements and disclosures. We expect to recognize right of use assets and lease liabilities, primarily for our office building lease.

In December 2017, the SEC issued Staff Accounting Bulletin (SAB) 118 to address the application of U.S. GAAP in situations in which a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (the Tax Reform Act) which was signed into law on December 22, 2017. In March 2018, the FASB issued ASU 2018-05, which amended ASC 740 to incorporate the requirements of SAB 118. We recognized the provisional tax impacts of the Tax Reform Act in the fourth quarter of 2017. During the third quarter of 2018, we filed our U.S. federal tax return for 2017. While we do not anticipate any remaining adjustments related to the Tax Reform Act, the measurement period under SAB 118 remains open as there is still anticipated guidance clarifying certain aspects of the Tax Reform Act. We did not have any subsequent adjustments in the fourth quarter of 2018 when the full analysis was completed.

In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. Among the amendments is the requirement to present any changes in shareholders’ equity in the interim financial statements, either in a separate statement or footnote in the quarterly reports on Form 10-Q. The amendments became effective on November 5, 2018; however, the SEC has stated it will not object if filers first include the additional disclosure for the first quarter that begins after the effective date of the amendments. As a result, Aptevo will first provide the additional disclosure in its quarterly report on Form 10-Q for the first quarter of 2019. We will be adding an additional disclosure to our filing, but currently do not anticipate there to be any financial impact.

Recently Adopted Standards

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), and has subsequently issued a number of amendments to ASU 2014-09. We adopted this standard effective January 1, 2018 on a modified retrospective basis. The new standard as amended, provides a single comprehensive model to be used in the accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, included industry-specific guidance.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted cash. This standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents when reconciling the beginning-of and ending-of period total amounts shown on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this standard effective January 1, 2018. Upon adoption of this standard, we applied the retrospective transition method for each period presented. As a result of this adoption we adjusted our consolidated statement of cash flows to include $10.4 million of restricted cash at December 31, 2017 and $7.8 million in restricted cash at December 31, 2018. See Note 5 – Cash, cash equivalents, and restricted cash for additional information.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (ASC 230): Classification of Certain Cash Receipts and Cash Payments, which clarifies the classification and presentation of eight specific cash flow issues in the statement of cash flows. We adopted this standard effective January 1, 2018. Adoption of this standard had no impact on our consolidated statements of cash flows or related disclosures.

Sale of Hyperimmune Business

12 Months Ended

Dec. 31, 2018

Discontinued Operations And Disposal Groups [Abstract]

Sale of Hyperimmune Business

Note 2. Sale of Hyperimmune Business

On August 31, 2017, Aptevo entered into a sale agreement with Saol International Limited (Saol) whereby Aptevo agreed to sell its Hyperimmune Business. The sale was completed on September 28, 2017.

At the closing of the sale, Saol paid an amount equal to $65.0 million, including $3.3 million that was deposited in an escrow account for the purposes of satisfying any indemnification claims brought by Saol pursuant to the LLC purchase agreement, which was released in December 2018. In addition, Aptevo may receive (1) an additional potential milestone payment totaling up to $7.5 million related to the achievement of certain gross profit milestones, which if earned, will be collectable in the fourth quarter of 2020, and (2) up to $2.0 million related to collection of certain accounts receivable after the closing.

The following table represents the components attributable to the Hyperimmune Business presented as income from discontinued operations (in thousands):

	2017
Cash payment received	$	61,750
Escrow receivable		3,250
Collection of accounts receivable		37
Total consideration		65,037
Less:
Net carrying value of assets transferred to Saol		10,315
Transaction costs		1,273
Working capital adjustment		752
Net gain on sale of business	$	52,697

As a result of Aptevo’s decision to sell the Hyperimmune Business, the consolidated balance sheet for the year ended December 31, 2017, has been revised to reflect the results from the sale of the Hyperimmune Business, and related assets and liabilities, as discontinued operations. The amounts calculated for the discontinued operations include certain allocations that management believes fairly reflect the Hyperimmune Business operations.

The following table presents a reconciliation of the carrying amounts of assets and liabilities of the hyperimmune assets held for sale, net in the consolidated balance sheet (in thousands):

	December 31, 2017
ASSETS
Accounts receivable	$	3,977
Inventories		6,178
Total current assets, held for sale		10,155

Intangible assets, net		7,624
Total assets held for sale	$	17,779
LIABILITIES
Accounts payable and other accrued liabilities	$	3,928
Total current liabilities	$	3,928

The following table represents the components attributable to the Hyperimmune Business presented as income from discontinued operations in the consolidated statements of operations (in thousands):


	2017
Revenues:
Product sales	$	18,886
Total revenues		18,886
Costs and expenses:
Cost of product sales		7,730
Research and development		44
Selling, general and administrative		945
Income from operations		10,167
Gain on sale of Hyperimmune Business		52,697
Other income		—
Income from discontinued operations, before income taxes		62,864
Income tax expense		(23,299	)
Income from discontinued operations	$	39,565

Amortization for the Hyperimmune Business was $0.8 million for the year ended December 31, 2017. The net gain on sale of the Hyperimmune Business totaling, $52.7 million, was calculated as the difference between the fair value of the consideration received for the Hyperimmune Business, the carrying value of the net assets transferred to Saol, less the transaction costs incurred and a working capital adjustment. The net gain on sale of the business may be adjusted in future periods by the contingent consideration based upon the achievement of certain gross profit milestones and collection of certain outstanding accounts receivable.

In the year ended December 31, 2018, we recorded $0.1 million due to the collection of certain accounts receivable transferred to Saol during the sale and $3.3 million due to the collection of the amount placed in escrow in September 2017. As of December 31, 2018, there were no claims against these escrow funds and they were released. There was no depreciation, capital expenditures or other significant operating or investing non-cash items for the year ended December 31, 2018.

Collaboration Agreements

12 Months Ended

Dec. 31, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Collaboration Agreements

Note 3. Collaboration Agreements

Alligator

On July 20, 2017, our wholly owned subsidiary Aptevo Research and Development LLC (Aptevo R&D), entered into a collaboration and option agreement (Collaboration Agreement) with Alligator Bioscience AB (Alligator), pursuant to which Aptevo and Alligator will collaboratively develop ALG.APV-527, a lead bispecific antibody candidate simultaneously targeting 4-1BB (CD137), a member of the TNFR superfamily of a costimulatory receptor found on activated T-cells, and 5T4, a tumor antigen widely overexpressed in a number of different types of cancer. This product candidate is built on our novel ADAPTIR platform, which is designed to expand on the utility and effectiveness of therapeutic antibodies. Under this Collaboration Agreement, Alligator also granted to Aptevo a time-limited option to enter into a second agreement with Alligator for the joint development of a separate bispecific antibody.

In accordance with the terms of the Collaboration Agreement, the parties intend to develop the lead bispecific antibody candidate targeting 4-1BB (CD137) and 5T4 through the completion of Phase 2 clinical trials in accordance with an agreed upon development plan and budget. Subject to certain exceptions for Aptevo’s manufacturing and platform technologies, the parties will jointly own intellectual property generated in the performance of the development activities under the Collaboration Agreement.

Following the completion of the anticipated development activities under the Collaboration Agreement, the parties intend to seek a third-party commercialization partner for this product candidate, or, in certain circumstances, may elect to enter into a second agreement granting rights to either Aptevo R&D or Alligator to allow such party to continue the development and commercialization of this product candidate. Under the terms of this Collaboration Agreement, the parties intend to share revenue received from a third-party commercialization partner equally, or, if the development costs are not equally shared under this Collaboration Agreement, in proportion to the development costs borne by each party.

The Collaboration Agreement also contains several points in development at which either party may elect to “opt-out” (i.e., terminate without cause) and, following a termination notice period, cease paying development costs for this product candidate, which would be borne fully by the continuing party. Following an opt-out by a party, the continuing party will be granted exclusive rights to continue the development and commercialization of the product candidate, subject to a requirement to pay a percentage of revenue received from any future commercialization partner for this product, or, if the continuing party elects to self-commercialize, tiered royalties on the net sales of the product by the continuing party ranging from the low to mid-single digits, based on the point in development at which the opt-out occurs. The parties have also agreed on certain technical criteria or “stage gates” related to the development of this product candidate that, if not met, will cause an automatic termination and wind-down of this Collaboration Agreement and the activities thereunder, provided that the parties do not agree to continue.

The Collaboration Agreement contains industry standard termination rights, including for material breach following a specified cure period, and in the case of a party’s insolvency.

We assessed the arrangement in accordance with ASC 606 and concluded that the contract counterparty, Alligator, is not a customer. As such the arrangement is not in the scope of ASC 606 and is instead treated as a collaborative agreement under ASC 808. For the year ended December 31, 2018, Alligator incurred a higher share of the research and development costs than those of Aptevo which netted to $0.6 million and is reflected as a reduction in our research and development expenses.

MorphoSys

In August 2014, Aptevo entered into a collaboration agreement with MorphoSys AG (MorphoSys Agreement) for the joint development of MOR209/ES414, a targeted immunotherapeutics protein, which activates host T-cell immunity specifically against cancer cells expressing prostate specific membrane antigen, an antigen commonly overexpressed on prostate cancer cells. Effective August 31, 2017, MorphoSys terminated the MorphoSys Agreement. As a result of the termination, Aptevo has no ongoing obligation related to this agreement.

As a result of the termination, we recognized the total remaining deferred revenue balance of $3.7 million in the third quarter of 2017.

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4. Fair Value Measurements

The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows:

Level 1— Quoted prices in active markets for identical assets and liabilities;

Level 2— Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3— Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s financial assets measured at fair value consisted of the following as of December 31, 2018 and December 31, 2017:

	December 31, 2018
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds⁽¹⁾	$	29,047	$	—	$	—	$	29,047
Total assets	$	29,047	$	—	$	—	$	29,047

	December 31, 2017
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds⁽¹⁾	$	10,997	$	—	$	—	$	10,997
Corporate bonds		—		16,443		—		16,443
US government and agency debt securities		—		33,300		—		33,300
Foreign government and agency debt securities		—		23,945		—		23,945
Total assets	$	10,997	$	73,688	$	—	$	84,685

⁽¹⁾	As of December 31, 2018, the money market funds included $5.0 million in restricted cash, and as of December 31, 2017, the money market funds included $10.0 in restricted cash.

If quoted market prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices of similar instruments and other significant inputs derived from observable market data obtained from third-party data providers. These investments are included in Level 2 and consist of debt securities of U.S government agencies and corporate bonds. There were no transfers between Levels 1 and 2 during the twelve-month period ended December 31, 2018.

- Definition

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

+ References + Details

Cash, Cash Equivalents, and Restricted Cash

12 Months Ended

Dec. 31, 2018

Cash And Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Restricted Cash

Note 5. Cash, Cash Equivalents, and Restricted Cash

The Company’s cash equivalents are highly liquid investments with a maturity of 90 days or less at the date of purchase and include time deposits and investments in money market funds with commercial banks and financial institutions. Restricted cash, long-term includes $5.0 million related to the minimum cash covenant included in the Company’s Credit and Security Agreement (the Credit Agreement) with MidCap Financial Trust, and $2.4 million securing letters of credit.

The following table shows our cash, cash equivalents and restricted cash, both current and long-term portion as of December 31, 2018 and December 31, 2017:

	For the Year Ended December 31,
(in thousands)	2018		2017
Cash	$	29,047	$	6,098
Cash equivalents		1,588		997
Restricted cash, current portion		—		400
Restricted cash, net of current portion		7,448		10,000
Total cash, cash equivalents, and restricted cash	$	38,083	$	17,495

Investments

12 Months Ended

Dec. 31, 2018

Investments Debt And Equity Securities [Abstract]

Investments

Note 6. Investments

Investments are classified as available-for-sale debt securities and are carried at fair value with unrealized temporary holding gains and losses included in other comprehensive income or loss and as a net amount in accumulated other comprehensive income or loss until such gains and losses are realized. We did not recognize any realized gains or losses in net income during 2018. Available-for-sale securities are written down to fair value through income whenever it is necessary to reflect other than temporary impairments. We have determined that the unrealized gains on our marketable securities as of December 31, 2018 were temporary in nature, and currently does not intend to sell these securities before recovery of their amortized cost basis. All short-term investments are limited to a final maturity of less than one year from the reporting date.

	December 31, 2018
(in thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding (Losses)			Fair Value
Cash equivalents:
Money market funds⁽¹⁾	$	29,047	$	—	$	—		$	29,047
Total cash equivalents	$	29,047	$	—	$	—		$	29,047

Short-term investments:
Corporate bonds	$	—	$	—	$	12		$	12
US government and agency debt securities		—		—		31			31
Foreign government and ageny debt securities		—		—		62			62
Total short-term investments	$	—	$	—	$	105		$	105

	December 31, 2017
(in thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding (Losses)			Fair Value
Cash equivalents:
Money market funds⁽¹⁾	$	10,997	$	—	$	—		$	10,997
Total cash equivalents	$	10,997	$	—	$	—		$	10,997

Short-term investments:
Corporate bonds	$	16,455	$	—	$	(12	)	$	16,443
US government and agency debt securities		33,331		—		(31	)		33,300
Foreign government and ageny debt securities		24,007		—		(62	)		23,945
Total short-term investments	$	73,793	$	—	$	(105	)	$	73,688
⁽¹⁾ As of December 31, 2018, the money market funds included $5.0 million in restricted cash, and as of December 31, 2017, the money market funds included $10.0 in restricted cash.

Inventories

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

Note 7. Inventories

Inventories consist of the following:

	Ended December 31,
(in thousands)	2018		2017
Raw materials and supplies	$	194	$	56
Work-in-process		916		482
Finished goods		675		490
Total inventories	$	1,785	$	1,028

Property and Equipment, Net

12 Months Ended

Dec. 31, 2018

Property Plant And Equipment [Abstract]

Property and Equipment, Net

Note 8. Property and equipment, net

Property, plant and equipment consist of the following:

	For the Year Ended December 31,
(in thousands)	2018			2017
Leasehold improvements	$	2,278		$	2,228
Furniture and equipment		11,622			11,139
Property and equipment, gross		13,900			13,367
Less: Accumulated depreciation		(8,698	)		(7,524	)
Total property and equipment, net	$	5,202		$	5,843

Depreciation expense for the year ended December 31, 2018 and December 31, 2017 was $1.6 million and $1.5 million, respectively.

Intangible Assets, Net

12 Months Ended

Dec. 31, 2018

Intangible Assets Net Excluding Goodwill [Abstract]

IXINITY Intangible Assets, Net

Note 9. IXINITY Intangible Assets, Net

Intangible assets, net, is solely related to our IXINITY product. For the years ended December 31, 2018 and 2017, the Company recorded $0.8 million, respectively, of intangible asset amortization expense. As of December 31, 2018, the weighted average amortization period remaining for intangible assets was 75 months.

Future amortization expense as of December 31, 2018 is as follows:

(in thousands)
2019	$	830
2020		830
2021		830
2022 and beyond		2,760
Total remaining amortization	$	5,250

Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

Note 10. Debt

Credit Facility

On August 4, 2016, we entered into a Credit and Security Agreement (Credit Agreement), with MidCap Financial Trust. The original Credit Agreement provided us with up to $35.0 million of available borrowing capacity composed of two tranches of $20.0 million and $15.0 million. The first tranche of $20.0 million was made available to us, and drawn, on the closing date of the Credit Agreement. On September 28, 2017, we and MidCap Financial Trust entered into a second amendment to the Credit Agreement in order to accommodate the sale of the Hyperimmune Business under the LLC purchase agreement, and to reflect changes in the remaining business as a result of such sale.

Pursuant to the second Amendment, the agent and the lenders consented to the LLC purchase agreement and the consummation of the sale transaction, released the agent’s liens on the assets transferred to one of our subsidiaries prior to the sale, and agreed that no prepayment of the term loans under the credit agreement would be required as a result the sale. As part of the second amendment, the agent and the lenders agreed that: (i) the commitments of the lenders to make the remaining $15.0 million tranche of loans under the credit agreement were terminated, (ii) the covenant levels set forth in the minimum net commercial product revenue covenant were revised, (iii) a new covenant requiring us to maintain a minimum $10.0 million unrestricted cash balance, and (iv) the date on which the term loans begin to amortize would be extended to February 1, 2019 if we achieved net commercial product revenues of $16.0 million for the twelve month period ending June 30, 2018 and maintain such level of net commercial product revenues for each quarter prior to February 1, 2019 thereafter. As we achieved net commercial product revenues of $16.2 million for the twelve month period ending June 30, 2018, our principal repayments have been deferred to February 1, 2020.

On February 23, 2018, we entered into a third Amendment with the agent and lenders to amend certain provisions of the Credit Agreement in order to permit us to maintain a cash collateral account as security for our reimbursement obligations, in respect of certain letters of credit to be issued for our account.

On August 6, 2018, we entered into an Amended and Restated Credit and Security Agreement (Amended Credit Agreement) amending the terms of our original $20 million term loan agreement with MidCap. Under the Amended Credit Agreement, the timeline for us to begin making principal repayments has been extended to February 1, 2020, with an opportunity for further deferral through August 1, 2020. The amount of restricted cash that we are required to maintain on our balance sheet has been reduced from $10 million to $5 million.

The obligations under the Amended Credit Agreement will mature on February 1, 2023. Amounts drawn under the Amended Credit Agreement continue to accrue interest at a rate of LIBOR plus 7.60% per annum.

Future principal and interest payments in connection with the Credit Agreement as of December 31, 2018 are as follows:

(in thousands)
2019	$	1,936
2020		5,215
2021		9,257
2022		8,482
2023		2,022
Total principal and interest payments	$	26,912

Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Note 11. Net Income (Loss) per Share

Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common share equivalents outstanding for the period using the as-if converted method. For the purpose of this calculation, stock options and restricted stock units are only included in the calculation of diluted net income per share when their effect is dilutive.

We utilize the control number concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is loss from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Therefore, no dilutive effect has been recognized in the calculation of income from discontinued operations per share.

Prior to the spin-off, Aptevo did not operate as a separate entity and as a result did not have any common stock outstanding other than 1,000 shares held by Emergent. The calculation of basic and diluted net loss per share assumes that the 20,229,849 ordinary shares issued to Aptevo stockholders in connection with the spin-off were outstanding from the beginning of the periods presented. In March 2019, pursuant to our public offering, we issued 19,850,000 shares of common stock, warrants to purchase 19,850,000 shares of common stock, pre-funded warrants to purchase 2,150,000 shares of common stock, and warrants to purchase 2,150,000 shares of common stock.

Common stock equivalents include stock options and unvested RSUs.

The following table presents the computation of basic and diluted net income (loss) per share (in thousands, except share and per share amounts):

	For the Year Ended December 31,
	2018			2017
Net income (loss)	$	(53,689	)	$	6,973

Basic and diluted net income (loss) per share:
Net loss from continuing operations	$	(2.39	)	$	(1.53	)
Net income from discontinued operations	$	—		$	1.86
Net income (loss)	$	(2.39	)	$	0.33
Weighted-average shares used to compute per share calculation		22,500,053			21,335,157

The following table represents all potentially dilutive shares, which were all anti-dilutive and therefore excluded from the calculation of diluted net loss per share:

	For the Year Ended December 31,
(in thousands, except for per share amounts)	2018		2017
Outstanding options to purchase common stock		3,330		2,819
Unvested RSUs		133		1,211

Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Equity

Note 12. Equity

Common Stock

For the year ended December 31, 2018, we received proceeds of $0.6 million upon the exercise of stock options which resulted in the issuance of 373,601 shares of common stock. For the year ended December 31, 2017 there was no proceeds from the exercise of stock options and no issuance of shares of common stock. We also issued 815,834 and 1,159,216 shares of common stock in the years ended December 31, 2018 and December 31, 2017, respectively, upon the vesting of RSUs.

Equity Distribution Agreement

On November 9, 2017, we entered into an Equity Distribution Agreement (the Equity Distribution Agreement) with Piper Jaffray & Co. (Piper Jaffray). The Equity Distribution Agreement provides that, upon the terms and subject to the conditions set forth therein, we may issue and sell through Piper Jaffray, acting as sales agent, shares of our common stock, $0.001 par value per share (the Common Stock) having an aggregate offering price of up to $17.5 million. We have no obligation to sell any such shares under the Equity Distribution Agreement. The sale of the Shares by Piper Jaffray will be effected pursuant to a Registration Statement on Form S-3 which we filed on November 9, 2017 (the Registration Statement). We have issued 13,265 shares under the Equity Distribution Agreement as of December 31, 2018.

Converted Equity Awards Incentive Plan

In connection with the spin-off from Emergent BioSolutions, Inc. (Emergent) in August 2016, we adopted the Converted Equity Awards Incentive Plan (Converted Plan) and outstanding equity awards of Emergent held by Aptevo employees were converted into or replaced with equity awards of Aptevo (Conversion Awards) under the Converted Plan and were adjusted to maintain the economic value before and after the distribution date using the relative fair market value of the Emergent and Aptevo common stock based on the closing prices as of August 1, 2016. A total of 1.3 million shares of Aptevo common stock have been authorized for issuance under the Converted Plan. Options issued as Conversion Awards were priced according to the Converted Plan. RSUs issued as part of the Converted Plan provide for the issuance of a share of Aptevo’s stock at no cost to the holder.

2016 Stock Incentive Plan

On August 1, 2016, the Company adopted the 2016 Stock Incentive Plan (2016 SIP). A total of 3.1 million shares of Aptevo common stock have been authorized for issuance under the 2016 SIP in the form of equity stock options.

Stock options under the 2016 SIP generally vest pro rata over a three-year period and terminate ten years from the grant date, though the specific terms of each grant are determined individually. The Company’s executive officers and certain other employees may be awarded options with different vesting criteria, and options granted to non-employee directors also vest over a three-year period. Option exercise prices for new options granted by the Company equal the closing price of the Company’s common stock on the Nasdaq Global Market on the date of grant.

RSUs issued under the 2016 SIP provide for the issuance of a share of the Company’s common stock at no cost to the holder. RSUs granted to employees under the 2016 SIP generally provide for time-based vesting over an eighteen-month to three-year period, although certain employees may be awarded RSUs with different time-based vesting criteria. Prior to vesting, RSUs granted under the 2016 SIP do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued or outstanding.

The equity compensation awards granted by the Company generally vest only if the employee is employed by the Company (or in the case of directors, the director continues to serve on the Board) on the vesting date.

On May 31, 2017, at the 2017 Annual Meeting of Stockholders (Annual Meeting), the Company’s stockholders approved the amendment and restatement of the Company’s 2016 SIP (Restated 2016 Plan) to, among other things, increase the number of authorized shares issuable by 1.3 million shares of Aptevo common stock. The Restated 2016 Plan was previously approved, subject to stockholder approval, by the Board of Directors of the Company.

2018 Stock Incentive Plan

On June 1, 2018, at the 2018 Annual Meeting, the Company’s stockholders approved a new 2018 Stock Incentive Plan (2018 SIP), which replaces the Restated 2016 Plan on a go-forward basis. All stock options, RSUs or other equity awards granted subsequent to June 1, 2018 will be issued out of the 2018 SIP, which has 2.9 million shares of Aptevo common stock authorized for issuance. The 2018 Plan became effective immediately upon stockholder approval at the Annual Meeting. Any shares subject to outstanding stock awards granted under the 2016 SIP that (a) expire or terminate for any reason prior to exercise or settlement; (b) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company; or (c) otherwise would have returned to the 2016 SIP for future grant pursuant to the terms of the 2016 Plan (such shares, the “Returning Shares”) will immediately be added to the share reserve under the 2018 SIP as and when such shares become Returning Shares, up to a maximum of 3,711,620 shares. The 2018 SIP was previously approved, subject to stockholder approval, by the Board of Directors of the Company. As of December 31, 2018, there are 2.8 million shares available to be granted under the 2018 SIP.

Stock options under the 2018 SIP generally vest pro rata over a three-year period and terminate ten years from the grant date, though the specific terms of each grant are determined individually. The Company’s executive officers and certain other employees may be awarded options with different vesting criteria, and options granted to non-employee directors also vest over a three-year period. Option exercise prices for new options granted by the Company equal the closing price of the Company’s common stock on the Nasdaq Global Market on the date of grant.

Stock-Based Compensation Expense

Stock-based compensation expense includes amortization of stock options and restricted stock units granted to employees and non-employees and has been reported in our Consolidated Statements of Operation and Comprehensive Loss as follows:

	For the Year Ended December 31,
(in thousands)	2018		2017
Research and development	$	884	$	2,256
Selling, general and administrative		1,256		2,628
Total stock-based compensation expense	$	2,140	$	4,884

The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted based on the fair value of the award as of the grant date. The Company recognizes the compensation expense over the vesting period.

Stock Options

Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:

	For the Year Ended December 31,
	2018	2017
Expected dividend yield	0.00%	0.00%
Expected volatility	75.00%	75.00%
Risk-free interest rate	2.74%	1.90%
Expected average life of options	6 years	6 years

Management applied an estimated forfeiture rate for the 2018 plan period of 10%.

The following is a summary of option activity for the year ended December 31, 2018:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Term		Aggregate Intrinsic Value
Balance at December 31, 2017		2,819,344		$	2.41		—	$	5,156,881
Granted		907,388			3.55		—		—
Exercised		(238,808	)		2.17		—		539,140
Forfeited		(158,306	)		2.46		—		247,227
Outstanding at December 31, 2018		3,329,618		$	2.74		6.99	$	—
Exercisable at December 31, 2018		1,600,258		$	2.50		5.17	$	—

As of December 31, 2018, we had $2.1 million of unrecognized compensation expense related to options expected to vest over a weighted average period of 1.9 years. The weighted average remaining contractual life of outstanding and exercisable options is 5.2 years. As of December 31, 2018, none of our outstanding or exercisable stock options are in the money, and as such there is no aggregate intrinsic value for either the outstanding or exercisable stock options in the above table.

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing stock price of Aptevo’s common stock on the last trading day of 2018 and the exercise price, multiplied by the number of in the money options) that would have been received by the option holders had all the option holders exercised their options on December 31, 2018.

Restricted Stock Units

The following is a summary of restricted stock activity for the year ended December 31, 2018:

	Number of Units			Weighted Average Fair Value per Unit		Aggregate Fair Value
Balance at December 31, 2017		1,211,487		$	2.91	$	5,136,705
Granted		—			—		—
Vested		(1,059,836	)		2.90		3,514,900
Forfeited		(18,611	)		2.96		51,748
Outstanding at December 31, 2018		133,040		$	2.97	$	168,961
Expected to Vest		130,357		$	2.97	$	165,554

As of December 31, 2017, we had less than $0.1 million of unrecognized compensation expense related to RSU’s, which will all be fully vested by March 11, 2019.

The fair value of each RSU has been determined to be the closing trading price of the Company’s common shares on the date of grant as quoted in NASDAQ Global Market.

Leases and Contingencies

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Leases and Contingencies

Note 14. Leases and Contingencies

The Company leases laboratory and office facilities, and office equipment under operating lease agreements. The Company recognizes rent expense under such arrangements on a straight-line basis over the term of the lease. Our current operating lease for our laboratory and office facilities expires in April 2020. During the year ended December 31, 2018 and December 31, 2017 total lease expense was $1.2 million and $1.7 million, respectively.

As of December 31, 2018, we are committed to future minimum lease payments under operating lease agreements as follows:

(in thousands)
2019	$	1,732
2020		664
2021		103
2022		8
Total	$	2,507

Revenue Reserves

12 Months Ended

Dec. 31, 2018

Revenue From Contract With Customer [Abstract]

Revenue Reserves

Note 15. Revenue Reserves

The following table summarizes activity in each of our receivable-related allowances and revenue-related liabilities for the year ended December 31, 2018:

(in thousands)	Chargebacks and Rebates			Distribution Fees, Cash Discounts and Patient Assistance
Balance at December 31, 2017	$	(428	)	$	(240	)
Provision related to current period sales		(2,515	)		(1,879	)
Credit or payments made during the period		1,620			1,254
Balance at December 31, 2018	$	(1,323	)	$	(865	)

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Note 16. Income Taxes

On December 22, 2017, the President of the United States signed into law Public Law No. 115-97, commonly referred to as the Tax Reform Act, following its passage by the United States Congress. The Tax Act made significant changes to U.S. federal income tax laws, including reduction of the corporate tax rate from 35.0% to 21.0%, limitation of the deduction for net operating losses to 80.0% of current year taxable income and elimination of net operating loss carrybacks, one-time taxation of offshore earning at reduced rates regardless of whether they are repatriated, elimination of U.S. tax on foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing many business deductions.

In December 2017, the SEC issued Staff Accounting Bulletin (SAB) 118 to address the application of U.S. GAAP in situations in which a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (the Tax Reform Act) which was signed into law on December 22, 2017. In March 2018, the FASB issued ASU 2018-05, which amended ASC 740 to incorporate the requirements of SAB 118. We recognized the provisional tax impacts of the Tax Reform Act in the fourth quarter of 2017. During the fourth quarter of 2018, we filed our US federal tax return and completed our determination of the accounting implications of the Tax Reform Act.

Significant components of the provisions for income taxes attributable to operations consist of the following:

	Year ended December 31,
(in thousands)	2018		2017
Current
Federal	$	—	$	12,051
State		—		710
International		—		2
Total current		—		12,763
Deferred
Federal		—		9,636
State		—		902
International		—		—
Total deferred		—		10,538
Total income tax benefit from continuing operations	$	—	$	23,301

The table above excludes income tax expense from discontinued operations of $23.3 million for 2017.

Loss from continuing operations before income taxes is comprised of:

	Year ended December 31,
(in thousands)	2018			2017
US	$	(53,692	)	$	(55,885	)
International		3			(8	)
Loss from continuing operations before benefit from income taxes	$	(53,689	)	$	(55,893	)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

	For the Year Ended December 31,
(in thousands)	2018			2017
Federal losses carryforward	$	20,251		$	8,454
Intangible assets		4,210			4,470
State losses carryforward		2,260			1,246
Other		1,543			1,262
Stock compensation		844			1,128
Other tax credits		713			502
Fixed assets		488			309
Deferred tax asset		30,309			17,371
Prepaid expenses		—			(224	)
Deferred tax liability		—			(224	)
Valuation allowance		(30,309	)		(17,147	)
Net deferred tax liabilities	$	—		$	—

As of December 31, 2018, and 2017, we have recorded federal net operating losses (NOL) carryforwards of approximately $96.4 and $41.5 million, respectively, state NOL carryforwards of approximately $44.5 million and $20.2, respectively, and tax credit carryforwards of $0.7 million and $0.5 million, respectively. The federal losses and credits will begin to expire in 2037. The state net operating losses will begin to expire in varying periods. Carryforwards of net operating losses and tax credits are subject to possible limitation, should a change in ownership occur, as defined by Internal Revenue Code Section 382.

The Company files income tax returns in the U.S. and several state jurisdictions and are open to review by taxing authorities for the 2016 tax filings and thereafter.

We are subject to the accounting guidance for uncertain income tax positions. We believe that our income tax positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material adverse effect on our financial condition, results of operations, or cash flow. Our policy for recording interest and penalties associated with audits and uncertain tax positions is to record such items as a component of income tax expense, and amounts recognized to date are insignificant. No uncertain income tax positions are recorded, and we do not expect our uncertain tax position to change during the next twelve months.

The reconciliation of the federal statutory income tax rate to the Company’s effective income tax from continuing operations is as follows:

	Year ended December 31,
	2018			2017
Federal tax at statutory rates		21.0	%		35.0	%
State taxes, net of federal benefit		2.5	%		2.4	%
Change in valuation allowance		-24.5	%		22.7	%
Tax credits		0.4	%		0.6	%
Permanent differences		-0.2	%		-0.3	%
Other		0.8	%		-1.3	%
Tax Reform		0.0	%		-17.4	%
Total income tax benefit		0.0	%		41.7	%

Nature of Business and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Use of Estimates

Principles of Consolidation

Cash Equivalents

Restricted Cash

Short-Term Investments

Concentrations of Credit Risk

Major Customers

	2018						2017
	Percentage of Total Revenue			Percentage of Accounts Receivable			Percentage of Total Revenue			Percentage of Accounts Receivable
Customer A		72	%		70	%		83	%		73	%
Customer B		17	%		19	%		—			—
Customer C		—			—			13	%		27	%

Accounts Receivable

Inventories

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:

Furniture and equipment	7-10 years
Software and hardware	3-5 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Fair Value of Financial Instruments

Product Sales, Rebates and other Discounts

Debt Issuance Costs

Revenue Recognition

Product Revenue, Net

Reserves for Variable Consideration

We have established provisions for the following types of variable consideration:

Cash Discounts: Most customers have the option to receive a cash discount for early payment. Typically, cash discounts are two-percent of the invoice amount if the payment is made within thirty days.

Collaborations

Research and Development Costs

Selling, General and Administrative Expenses

Stock-Based Compensation

•

the risk-free interest rate, which we based on the yield curve of U.S. Treasury securities with periods commensurate with the expected term of the options being valued;

•

the expected dividend yield, which we estimate to be zero based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends; and

•

the fair value of our common stock on the date of grant.

Income Taxes

Segment Reporting

We have determined that we operate in a single segment and have one reporting unit: the discovery, development, commercialization and sale of novel oncology and hematology therapeutics.

New Accounting Pronouncements

Recently Adopted Standards

Nature of Business and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of Major Customers Concentration Risk Percentage

	2018						2017
	Percentage of Total Revenue			Percentage of Accounts Receivable			Percentage of Total Revenue			Percentage of Accounts Receivable
Customer A		72	%		70	%		83	%		73	%
Customer B		17	%		19	%		—			—
Customer C		—			—			13	%		27	%

Schedule of Estimated Useful Lives of Property and Equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:

Furniture and equipment	7-10 years
Software and hardware	3-5 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Sale of Hyperimmune Business (Tables)

12 Months Ended

Dec. 31, 2018

Discontinued Operations And Disposal Groups [Abstract]

Summary of Components Attributable to Hyperimmune Business Presented as Income from Discontinued Operations

The following table represents the components attributable to the Hyperimmune Business presented as income from discontinued operations (in thousands):

	2017
Cash payment received	$	61,750
Escrow receivable		3,250
Collection of accounts receivable		37
Total consideration		65,037
Less:
Net carrying value of assets transferred to Saol		10,315
Transaction costs		1,273
Working capital adjustment		752
Net gain on sale of business	$	52,697

Summary of Reconciliation of Carrying Amounts of Assets and Liabilities of Hyperimmune Assets Held For Sale, Net in Consolidated Balance Sheet and Components Attributable to Hyperimmune Business Presented as Income from Discontinued Operations in Consolidated Statements of Operations

The following table presents a reconciliation of the carrying amounts of assets and liabilities of the hyperimmune assets held for sale, net in the consolidated balance sheet (in thousands):

	December 31, 2017
ASSETS
Accounts receivable	$	3,977
Inventories		6,178
Total current assets, held for sale		10,155

Intangible assets, net		7,624
Total assets held for sale	$	17,779
LIABILITIES
Accounts payable and other accrued liabilities	$	3,928
Total current liabilities	$	3,928

The following table represents the components attributable to the Hyperimmune Business presented as income from discontinued operations in the consolidated statements of operations (in thousands):


	2017
Revenues:
Product sales	$	18,886
Total revenues		18,886
Costs and expenses:
Cost of product sales		7,730
Research and development		44
Selling, general and administrative		945
Income from operations		10,167
Gain on sale of Hyperimmune Business		52,697
Other income		—
Income from discontinued operations, before income taxes		62,864
Income tax expense		(23,299	)
Income from discontinued operations	$	39,565

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Summary of Financial Assets Measured at Fair Value

The Company’s financial assets measured at fair value consisted of the following as of December 31, 2018 and December 31, 2017:

	December 31, 2018
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds⁽¹⁾	$	29,047	$	—	$	—	$	29,047
Total assets	$	29,047	$	—	$	—	$	29,047

	December 31, 2017
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds⁽¹⁾	$	10,997	$	—	$	—	$	10,997
Corporate bonds		—		16,443		—		16,443
US government and agency debt securities		—		33,300		—		33,300
Foreign government and agency debt securities		—		23,945		—		23,945
Total assets	$	10,997	$	73,688	$	—	$	84,685

⁽¹⁾	As of December 31, 2018, the money market funds included $5.0 million in restricted cash, and as of December 31, 2017, the money market funds included $10.0 in restricted cash.

Cash, Cash Equivalents, and Restricted Cash (Tables)

12 Months Ended

Dec. 31, 2018

Cash And Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash, Both Current and Long-term Portion

The following table shows our cash, cash equivalents and restricted cash, both current and long-term portion as of December 31, 2018 and December 31, 2017:

	For the Year Ended December 31,
(in thousands)	2018		2017
Cash	$	29,047	$	6,098
Cash equivalents		1,588		997
Restricted cash, current portion		—		400
Restricted cash, net of current portion		7,448		10,000
Total cash, cash equivalents, and restricted cash	$	38,083	$	17,495

Investments (Tables)

12 Months Ended

Dec. 31, 2018

Investments Debt And Equity Securities [Abstract]

Schedule of short-term investments

All short-term investments are limited to a final maturity of less than one year from the reporting date.

	December 31, 2018
(in thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding (Losses)			Fair Value
Cash equivalents:
Money market funds⁽¹⁾	$	29,047	$	—	$	—		$	29,047
Total cash equivalents	$	29,047	$	—	$	—		$	29,047

Short-term investments:
Corporate bonds	$	—	$	—	$	12		$	12
US government and agency debt securities		—		—		31			31
Foreign government and ageny debt securities		—		—		62			62
Total short-term investments	$	—	$	—	$	105		$	105

	December 31, 2017
(in thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding (Losses)			Fair Value
Cash equivalents:
Money market funds⁽¹⁾	$	10,997	$	—	$	—		$	10,997
Total cash equivalents	$	10,997	$	—	$	—		$	10,997

Short-term investments:
Corporate bonds	$	16,455	$	—	$	(12	)	$	16,443
US government and agency debt securities		33,331		—		(31	)		33,300
Foreign government and ageny debt securities		24,007		—		(62	)		23,945
Total short-term investments	$	73,793	$	—	$	(105	)	$	73,688
⁽¹⁾ As of December 31, 2018, the money market funds included $5.0 million in restricted cash, and as of December 31, 2017, the money market funds included $10.0 in restricted cash.

Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:

	Ended December 31,
(in thousands)	2018		2017
Raw materials and supplies	$	194	$	56
Work-in-process		916		482
Finished goods		675		490
Total inventories	$	1,785	$	1,028

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2018

Property Plant And Equipment [Abstract]

Summary of Property, Plant and Equipment

Property, plant and equipment consist of the following:

	For the Year Ended December 31,
(in thousands)	2018			2017
Leasehold improvements	$	2,278		$	2,228
Furniture and equipment		11,622			11,139
Property and equipment, gross		13,900			13,367
Less: Accumulated depreciation		(8,698	)		(7,524	)
Total property and equipment, net	$	5,202		$	5,843

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2018

Intangible Assets Net Excluding Goodwill [Abstract]

Schedule of Future Amortization Expense

Future amortization expense as of December 31, 2018 is as follows:

(in thousands)
2019	$	830
2020		830
2021		830
2022 and beyond		2,760
Total remaining amortization	$	5,250

Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Future Principal and Interest Payment in Connection with Credit Agreement

Future principal and interest payments in connection with the Credit Agreement as of December 31, 2018 are as follows:

(in thousands)
2019	$	1,936
2020		5,215
2021		9,257
2022		8,482
2023		2,022
Total principal and interest payments	$	26,912

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income (Loss) per Share

The following table presents the computation of basic and diluted net income (loss) per share (in thousands, except share and per share amounts):

	For the Year Ended December 31,
	2018			2017
Net income (loss)	$	(53,689	)	$	6,973

Basic and diluted net income (loss) per share:
Net loss from continuing operations	$	(2.39	)	$	(1.53	)
Net income from discontinued operations	$	—		$	1.86
Net income (loss)	$	(2.39	)	$	0.33
Weighted-average shares used to compute per share calculation		22,500,053			21,335,157

Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share

The following table represents all potentially dilutive shares, which were all anti-dilutive and therefore excluded from the calculation of diluted net loss per share:

	For the Year Ended December 31,
(in thousands, except for per share amounts)	2018		2017
Outstanding options to purchase common stock		3,330		2,819
Unvested RSUs		133		1,211

Equity (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted

	For the Year Ended December 31,
(in thousands)	2018		2017
Research and development	$	884	$	2,256
Selling, general and administrative		1,256		2,628
Total stock-based compensation expense	$	2,140	$	4,884

Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model

Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:

	For the Year Ended December 31,
	2018	2017
Expected dividend yield	0.00%	0.00%
Expected volatility	75.00%	75.00%
Risk-free interest rate	2.74%	1.90%
Expected average life of options	6 years	6 years

Summary of Stock Option Activity

The following is a summary of option activity for the year ended December 31, 2018:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Term		Aggregate Intrinsic Value
Balance at December 31, 2017		2,819,344		$	2.41		—	$	5,156,881
Granted		907,388			3.55		—		—
Exercised		(238,808	)		2.17		—		539,140
Forfeited		(158,306	)		2.46		—		247,227
Outstanding at December 31, 2018		3,329,618		$	2.74		6.99	$	—
Exercisable at December 31, 2018		1,600,258		$	2.50		5.17	$	—

Summary of RSU Activity

The following is a summary of restricted stock activity for the year ended December 31, 2018:

	Number of Units			Weighted Average Fair Value per Unit		Aggregate Fair Value
Balance at December 31, 2017		1,211,487		$	2.91	$	5,136,705
Granted		—			—		—
Vested		(1,059,836	)		2.90		3,514,900
Forfeited		(18,611	)		2.96		51,748
Outstanding at December 31, 2018		133,040		$	2.97	$	168,961
Expected to Vest		130,357		$	2.97	$	165,554

Leases and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Summary of Future Minimum Lease Payments Under Operating Lease Agreements

As of December 31, 2018, we are committed to future minimum lease payments under operating lease agreements as follows:

(in thousands)
2019	$	1,732
2020		664
2021		103
2022		8
Total	$	2,507

Revenue Reserves (Tables)

12 Months Ended

Dec. 31, 2018

Revenue From Contract With Customer [Abstract]

Summary of Receivable Related Allowances and Revenue Related Liabilities

The following table summarizes activity in each of our receivable-related allowances and revenue-related liabilities for the year ended December 31, 2018:

(in thousands)	Chargebacks and Rebates			Distribution Fees, Cash Discounts and Patient Assistance
Balance at December 31, 2017	$	(428	)	$	(240	)
Provision related to current period sales		(2,515	)		(1,879	)
Credit or payments made during the period		1,620			1,254
Balance at December 31, 2018	$	(1,323	)	$	(865	)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Summary of Significant Components of Provisions for Income Taxes Attributable to Operations

Significant components of the provisions for income taxes attributable to operations consist of the following:

	Year ended December 31,
(in thousands)	2018		2017
Current
Federal	$	—	$	12,051
State		—		710
International		—		2
Total current		—		12,763
Deferred
Federal		—		9,636
State		—		902
International		—		—
Total deferred		—		10,538
Total income tax benefit from continuing operations	$	—	$	23,301

Schedule of Loss from Continuing Operations Before Income Taxes

Loss from continuing operations before income taxes is comprised of:

	Year ended December 31,
(in thousands)	2018			2017
US	$	(53,692	)	$	(55,885	)
International		3			(8	)
Loss from continuing operations before benefit from income taxes	$	(53,689	)	$	(55,893	)

Schedule of Tax Effects of Temporary Differences Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

	For the Year Ended December 31,
(in thousands)	2018			2017
Federal losses carryforward	$	20,251		$	8,454
Intangible assets		4,210			4,470
State losses carryforward		2,260			1,246
Other		1,543			1,262
Stock compensation		844			1,128
Other tax credits		713			502
Fixed assets		488			309
Deferred tax asset		30,309			17,371
Prepaid expenses		—			(224	)
Deferred tax liability		—			(224	)
Valuation allowance		(30,309	)		(17,147	)
Net deferred tax liabilities	$	—		$	—

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax from Continuing Operations

The reconciliation of the federal statutory income tax rate to the Company’s effective income tax from continuing operations is as follows:

	Year ended December 31,
	2018			2017
Federal tax at statutory rates		21.0	%		35.0	%
State taxes, net of federal benefit		2.5	%		2.4	%
Change in valuation allowance		-24.5	%		22.7	%
Tax credits		0.4	%		0.6	%
Permanent differences		-0.2	%		-0.3	%
Other		0.8	%		-1.3	%
Tax Reform		0.0	%		-17.4	%
Total income tax benefit		0.0	%		41.7	%

Nature of Business and Significant Accounting Policies - Additional Information (Details)		12 Months Ended
	Mar. 13, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) Product Segment Unit	Dec. 31, 2017 USD ($)
Nature Of Business [Line Items]
Number of revenue-generating product \| Product		1
Warrants outstanding, term	10 years
Long-term restricted cash		$ 7,448,000	$ 10,000,000
Number of operating segment \| Segment		1
Number of reporting unit \| Unit		1
ASU 2016-18
Nature Of Business [Line Items]
Restricted cash		$ 7,800,000	$ 10,400,000
Stock Option
Nature Of Business [Line Items]
Expected dividend yield		0.00%	0.00%
Estimated forfeiture rate		10.00%
RSUs and Options
Nature Of Business [Line Items]
Estimated forfeiture rate		10.00%
Letter of Credit
Nature Of Business [Line Items]
Long-term restricted cash		$ 2,400,000
Covenant of MidCap Loan Agreement
Nature Of Business [Line Items]
Long-term restricted cash		$ 5,000,000
Subsequent Event
Nature Of Business [Line Items]
Proceeds from issuance of warrants	$ 22,000,000
Number of common stock to be issued up conversion of warrants \| shares	19,850,000
Number of warrants issued \| shares	19,850,000
Warrants exercise price, per share \| $ / shares	$ 1.30
Number of common stock to be issued exercise of prefunded warrants \| shares	2,150,000
Pre funded warrants exercise price, per share \| $ / shares	$ 0.01
Additional proceeds to be received upon exercise of the warrants	$ 28,600,000
Maximum
Nature Of Business [Line Items]
Cash equivalents, maturity period		90 days
Maximum eligible annual benefit under the program		$ 12,000
Maximum amount of benefit provided to customers		$ 100,000
Maximum \| Subsequent Event
Nature Of Business [Line Items]
Number of common stock to be issued up conversion of warrants \| shares	2,150,000

Nature of Business and Significant Accounting Policies - Schedule of Major Customers Concentration Risk Percentage (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Customer A \| Total Revenue
Concentration Risk [Line Items]
Percentage of concentration risk	72.00%	83.00%
Customer A \| Accounts Receivable
Concentration Risk [Line Items]
Percentage of concentration risk	70.00%	73.00%
Customer B \| Total Revenue
Concentration Risk [Line Items]
Percentage of concentration risk	17.00%
Customer B \| Accounts Receivable
Concentration Risk [Line Items]
Percentage of concentration risk	19.00%
Customer C \| Total Revenue
Concentration Risk [Line Items]
Percentage of concentration risk		13.00%
Customer C \| Accounts Receivable
Concentration Risk [Line Items]
Percentage of concentration risk		27.00%

Nature of Business and Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Furniture and Equipment \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful lives	7 years
Furniture and Equipment \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful lives	10 years
Software and Hardware
Property Plant And Equipment [Line Items]
Estimated useful lives	product life
Software and Hardware \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful lives	3 years
Software and Hardware \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	Lesser of the asset life or the remaining lease term

Sale of Hyperimmune Business - Additional Information (Details) - USD ($)			12 Months Ended
	Sep. 28, 2017	Aug. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Net gain on sale of business				$ 52,697,000
Hyperimmune Business
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Business sale agreement date		Aug. 31, 2017
Business sale completion date	Sep. 28, 2017
Cash payment received	$ 65,037,000
Escrow receivable	3,250,000		$ 3,300,000
Amortization				800,000
Net gain on sale of business	52,697,000			$ 52,697,000
Collection of certain accounts receivable transferred to Saol			100,000
Claim against escrow funds			0
Depreciation			0
Capital expenditures			0
Other non-cash operating activities			0
Other non-cash investing activities			$ 0
Hyperimmune Business \| Maximum
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Additional potential milestone payment related to gross profit	7,500,000
Additional potential milestone payment related to accounts receivable	$ 2,000,000

Sale of Hyperimmune Business - Summary of Components Attributable to Hyperimmune Business Presented as Income from Discontinued Operations (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 28, 2017	Dec. 31, 2017	Dec. 31, 2018
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Net gain on sale of business		$ 52,697
Hyperimmune Business
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Cash payment received	$ 61,750
Escrow receivable	3,250		$ 3,300
Collection of accounts receivable	37	3,977
Total consideration	65,037
Net carrying value of assets transferred to Saol	10,315	17,779
Transaction costs	1,273
Working capital adjustment	752
Net gain on sale of business	$ 52,697	$ 52,697

Sale of Hyperimmune Business - Summary of Reconciliation of Carrying Amounts of Assets and Liabilities of Hyperimmune Assets Held For Sale, Net in Consolidated Balance Sheet (Details) - Hyperimmune Business - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 28, 2017
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Accounts receivable	$ 3,977	$ 37
Inventories	6,178
Total current assets, held for sale	10,155
Intangible assets, net	7,624
Total assets held for sale	17,779	$ 10,315
Accounts payable and other accrued liabilities	3,928
Total current liabilities	$ 3,928

Sale of Hyperimmune Business - Summary of Components Attributable to Hyperimmune Business Presented as Income from Discontinued Operations in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 28, 2017	Dec. 31, 2017
Costs and expenses:
Gain on sale of Hyperimmune Business		$ 52,697
Income from discontinued operations, before income taxes		62,864
Income tax expense		(23,299)
Income from discontinued operations		39,565
Hyperimmune Business
Revenues:
Product sales		18,886
Total revenues		18,886
Costs and expenses:
Cost of product sales		7,730
Research and development		44
Selling, general and administrative		945
Income from operations		10,167
Gain on sale of Hyperimmune Business	$ 52,697	52,697
Income from discontinued operations, before income taxes		62,864
Income tax expense		(23,299)
Income from discontinued operations		$ 39,565

Collaboration Agreements - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2017
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Reduction in research and development expense	$ 0.6
MorphoSys Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue		$ 3.7

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value (Details) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Financial Assets:

Assets fair value

$ 29,047

$ 84,685

Corporate Bonds

Financial Assets:

Assets fair value

16,443

Money Market Funds

Financial Assets:

Assets fair value

^[1]

29,047

10,997

US Government and Agency Debt Securities

Financial Assets:

Assets fair value

33,300

Foreign Government and Agency Debt Securities

Financial Assets:

Assets fair value

23,945

Level 1

Financial Assets:

Assets fair value

29,047

10,997

Level 1 | Money Market Funds

Financial Assets:

Assets fair value

^[1]

$ 29,047

10,997

Level 2

Financial Assets:

Assets fair value

73,688

Level 2 | Corporate Bonds

Financial Assets:

Assets fair value

16,443

Level 2 | US Government and Agency Debt Securities

Financial Assets:

Assets fair value

33,300

Level 2 | Foreign Government and Agency Debt Securities

Financial Assets:

Assets fair value

$ 23,945

[1]	As of December 31, 2018, the money market funds included $5.0 million in restricted cash, and as of December 31, 2017, the money market funds included $10.0 in restricted cash

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value (Parenthetical) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amount of money market funds included in restricted cash	$ 7,448	$ 10,000
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amount of money market funds included in restricted cash	$ 5,000	$ 10,000

Cash, Cash Equivalents, and Restricted Cash - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Restricted Cash And Cash Equivalents Items [Line Items]
Long-term restricted cash	$ 7,448	$ 10,000
Maximum
Restricted Cash And Cash Equivalents Items [Line Items]
Cash equivalents, maturity period	90 days
Letter of Credit
Restricted Cash And Cash Equivalents Items [Line Items]
Long-term restricted cash	$ 2,400
Covenant of MidCap Loan Agreement
Restricted Cash And Cash Equivalents Items [Line Items]
Long-term restricted cash	$ 5,000

Cash, Cash Equivalents, and Restricted Cash - Schedule of Cash, Cash Equivalents and Restricted Cash, Both Current and Long-term Portion (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Cash And Cash Equivalents [Abstract]
Cash	$ 29,047	$ 6,098
Cash equivalents	1,588	997
Restricted cash, current portion		400
Restricted cash, net of current portion	7,448	10,000
Total cash, cash equivalents, and restricted cash	$ 38,083	$ 17,495

Investments - Schedule of Short-term Investments (Details) - USD ($)
$ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Schedule Of Available For Sale Securities [Line Items]

Fair Value

$ 73,688

Short-term Investments

Schedule Of Available For Sale Securities [Line Items]

Amortized Cost

73,793

Gross Unrealized Holding (Losses)

$ 105

(105)

Fair Value

105

73,688

Short-term Investments | Corporate Bonds

Schedule Of Available For Sale Securities [Line Items]

Amortized Cost

16,455

Gross Unrealized Holding (Losses)

(12)

Fair Value

16,443

Short-term Investments | US Government and Agency Debt Securities

Schedule Of Available For Sale Securities [Line Items]

Amortized Cost

33,331

Gross Unrealized Holding (Losses)

(31)

Fair Value

33,300

Short-term Investments | Foreign Government and Agency Debt Securities

Schedule Of Available For Sale Securities [Line Items]

Amortized Cost

24,007

Gross Unrealized Holding (Losses)

(62)

Fair Value

23,945

Cash Equivalents

Schedule Of Available For Sale Securities [Line Items]

Amortized Cost

29,047

10,997

Gross Unrealized Holding Gains

Gross Unrealized Holding (Losses)

Fair Value

29,047

10,997

Cash Equivalents | Money Market Funds

Schedule Of Available For Sale Securities [Line Items]

Amortized Cost

^[1]

29,047

10,997

Gross Unrealized Holding Gains

^[1]

Gross Unrealized Holding (Losses)

^[1]

Fair Value

^[1]

$ 29,047

$ 10,997

[1]	As of December 31, 2018, the money market funds included $5.0 million in restricted cash, and as of December 31, 2017, the money market funds included $10.0 in restricted cash.

Investments - Schedule of Short-term Investments (Parenthetical) (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Schedule Of Available For Sale Securities [Line Items]
Long-term restricted cash	$ 7,448	$ 10,000
Money Market Funds
Schedule Of Available For Sale Securities [Line Items]
Long-term restricted cash	$ 5,000	$ 10,000

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Inventory Adjustments [Abstract]
Raw materials and supplies	$ 194	$ 56
Work-in-process	916	482
Finished goods	675	490
Total inventories	$ 1,785	$ 1,028

Property and Equipment, Net - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 13,900	$ 13,367
Less: Accumulated depreciation	(8,698)	(7,524)
Total property and equipment, net	5,202	5,843
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	2,278	2,228
Furniture and Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 11,622	$ 11,139

Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Intangible Assets Net Excluding Goodwill [Abstract]
Amortization expense	$ 0.8	$ 0.8
Weighted average remaining amortization period	75 months

Intangible Assets, Net - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
2019	$ 830
2020	830
2021	830
2022 and beyond	2,760
Total remaining amortization	$ 5,250	$ 6,080

Debt - Additional Information (Details) - USD ($)			12 Months Ended
Debt - Additional Information (Details) - USD ($)	Aug. 06, 2018	Sep. 28, 2017	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017	Aug. 04, 2016
Line Of Credit Facility [Line Items]
Maximum borrowing capacity						$ 35,000,000
Unrestricted cash balance			$ 29,047,000		$ 6,098,000
Net commercial product revenue, date to be achieved		Jun. 30, 2018
Net commercial product revenue requirements to be maintained			The date on which the term loans begin to amortize would be extended to February 1, 2019 if we achieved net commercial product revenues of $16.0 million for the twelve month period ending June 30, 2018 and maintain such level of net commercial product revenues for each quarter prior to February 1, 2019 thereafter.
Revenue			$ 23,067,000		14,658,000
Long-term restricted cash			$ 7,448,000		$ 10,000,000
Amended Credit Agreement
Line Of Credit Facility [Line Items]
Maximum borrowing capacity	$ 20,000,000
Line of credit, repayment begin date	Feb. 01, 2020
Line of credit, repayment deferral begin date	Aug. 01, 2020
Long-term restricted cash	$ 5,000,000
Credit agreement, maturity date	Feb. 01, 2023
Credit agreement reference rate for the variable rate			LIBOR
Credit agreement basis spread on variable rate	7.60%
Credit Facility First Tranche
Line Of Credit Facility [Line Items]
Maximum borrowing capacity						20,000,000
Credit facility available and drawn						20,000,000
Credit Facility Second Tranche
Line Of Credit Facility [Line Items]
Maximum borrowing capacity						$ 15,000,000
Prepayment of term loans		$ 0
Terminated maximum borrowing capacity		$ 15,000,000
Term loans extended amortization date based on net commercial product revenues recognized		Feb. 01, 2019
Net commercial product revenue required to be achieved on trailing twelve month basis		$ 16,000,000
Revenue				$ 16,200,000
Type of Revenue [Extensible List]		apvo:NetCommercialProductMember
Principal repayments date deferred upon achievement of net commercial product revenues			Feb. 01, 2020
Credit Facility Second Tranche \| Minimum
Line Of Credit Facility [Line Items]
Unrestricted cash balance		$ 10,000,000

Debt - Schedule of Future Principal and Interest Payment in Connection with Credit Agreement (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Debt Disclosure [Abstract]
2019	$ 1,936
2020	5,215
2021	9,257
2022	8,482
2023	2,022
Total principal and interest payments	$ 26,912

Net Income (Loss) Per Share - Additional Information (Details) - shares	Mar. 13, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Ordinary shares outstanding		22,808,416	21,605,716
Ordinary shares issued in connection with spin-off		22,808,416	21,605,716
Emergent
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Ordinary shares outstanding		1,000
Spin-off
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Ordinary shares issued in connection with spin-off		20,229,849
Subsequent Event
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Number of common stock to be issued up conversion of warrants	19,850,000
Number of warrants issued	19,850,000
Number of common stock to be issued exercise of prefunded warrants	2,150,000
Subsequent Event \| Maximum
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Number of common stock to be issued up conversion of warrants	2,150,000

Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net income (loss)	$ (53,689)	$ 6,973
Basic and diluted net income (loss) per share:
Net loss from continuing operations	$ (2.39)	$ (1.53)
Net income from discontinued operations		1.86
Net income (loss)	$ (2.39)	$ 0.33
Weighted-average shares used to compute per share calculation	22,500,053	21,335,157

- Definition

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

+ References + Details

Net Income (Loss) Per Share - Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Outstanding Options to Purchase Common Stock
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	3,330	2,819
Unvested RSUs
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	133	1,211

Equity - Additional Information (Details) - USD ($)				12 Months Ended
Equity - Additional Information (Details) - USD ($)	Jun. 01, 2018	Nov. 09, 2017	Aug. 01, 2016	Dec. 31, 2018	Dec. 31, 2017	May 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, par value				$ 0.001	$ 0.001
RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period					Mar. 11, 2019
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock issued upon exercise of stock options				238,808
Estimated forfeiture rate				10.00%
Unrecognized compensation expense				$ 2,100,000
Options expected to vest, weighted average period				1 year 10 months 24 days
Options outstanding and exercisable weighted average remaining contractual life				5 years 2 months 12 days
Number of shares, outstanding				3,329,618	2,819,344
Number of shares, exercisable				1,600,258
Aggregate intrinsic value, outstanding				$ 0	$ 5,156,881
Aggregate intrinsic value, exercisable				$ 0
Stock Option \| In The Money
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, outstanding				0
Number of shares, exercisable				0
2016 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan			3,100,000
Stock plan vesting period			3 years
Stock plan termination period			10 years
2016 Stock Incentive Plan \| RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase of authorized shares issuable						1,300,000
2016 Stock Incentive Plan \| Non-employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period			3 years
2018 Stock Incentive Plan \| RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan	2,900,000
Stock plan vesting period	3 years
Stock plan termination period	10 years
Maximum number of returning shares from old plan to be add to shares reserve	3,711,620
Number of shares available for grant				2,800,000
2018 Stock Incentive Plan \| Non-employee Directors \| RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period	3 years
Minimum \| 2016 Stock Incentive Plan \| RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period			18 months
Maximum \| RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense					100,000
Maximum \| 2016 Stock Incentive Plan \| RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period			3 years
Equity Distribution Agreement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock shares				13,265
Common stock, par value		$ 0.001
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Proceeds upon exercise of stock options				$ 600,000	$ 0
Common stock issued upon exercise of stock options				373,601	174,763
Common stock issued upon vesting of restricted stock units				815,834	1,159,216
Common Stock \| Converted Equity Awards Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan			1,300,000
Common Stock \| Purchase Agreement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock shares					0
Common Stock \| Equity Distribution Agreement \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate offering price		$ 17,500,000

Equity - Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 2,140	$ 4,884
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	884	2,256
Selling, General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,256	$ 2,628

Equity - Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model (Details) - Stock Option	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected volatility	75.00%	75.00%
Risk-free interest rate	2.74%	1.90%
Expected average life of options	6 years	6 years

Equity - Summary of Stock Option Activity (Details) - Stock Option	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Outstanding, Beginning balance \| shares	2,819,344
Number of Shares, Granted \| shares	907,388
Number of Shares, Exercised \| shares	(238,808)
Number of Shares, Forfeited \| shares	(158,306)
Number of Shares, Outstanding, Ending balance \| shares	3,329,618
Number of Shares, Exercisable \| shares	1,600,258
Weighted-Average Exercise Price, Outstanding, Beginning balance \| $ / shares	$ 2.41
Weighted-Average Exercise Price, Granted \| $ / shares	3.55
Weighted-Average Exercise Price, Exercised \| $ / shares	2.17
Weighted-Average Exercise Price, Forfeited \| $ / shares	2.46
Weighted-Average Exercise Price, Outstanding, Ending balance \| $ / shares	2.74
Weighted-Average Exercise Price, Exercisable \| $ / shares	$ 2.50
Weighted-Average Remaining Term, Outstanding	6 years 11 months 26 days
Weighted-Average Remaining Term, Exercisable	5 years 2 months 1 day
Aggregate Intrinsic Value, Outstanding, Beginning balance \| $	$ 5,156,881
Aggregate Intrinsic Value, Exercised \| $	539,140
Aggregate Intrinsic Value, Forfeited \| $	247,227
Aggregate Intrinsic Value, Outstanding, Ending balance \| $	0
Aggregate Intrinsic Value, Exercisable \| $	$ 0

Equity - Summary of Restricted Stock Activity (Details) - RSUs	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Units, Outstanding, Beginning balance \| shares	1,211,487
Number of Units, Vested \| shares	(1,059,836)
Number of Units, Forfeited \| shares	(18,611)
Number of Units, Outstanding, Ending balance \| shares	133,040
Number of Units, Expected to Vest \| shares	130,357
Weighted Average Fair Value per Unit, Outstanding Beginning Balance \| $ / shares	$ 2.91
Weighted Average Fair Value per Unit, Vested \| $ / shares	2.90
Weighted Average Fair Value per Unit, Forfeited \| $ / shares	2.96
Weighted Average Fair Value per Unit, Outstanding Ending Balance \| $ / shares	2.97
Weighted Average Fair Value per Unit, Expected to Vest \| $ / shares	$ 2.97
Aggregate Fair Value, Outstanding, Beginning balance \| $	$ 5,136,705
Aggregate Fair Value, Vested \| $	3,514,900
Aggregate Fair Value, Forfeited \| $	51,748
Aggregate Fair Value, Outstanding, Ending balance \| $	168,961
Aggregate Fair Value, Expected to Vest \| $	$ 165,554

401(K) Savings Plan - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]
Maximum employee deferral rate	6.00%
Matching contributions made by employer	$ 0.5	$ 0.5
Maximum
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution, qualified deferral percentage	50.00%

Leases and Contingencies - Summary of Future Minimum Lease Payments Under Operating Lease Agreements (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 1,732
2020	664
2021	103
2022	8
Total	$ 2,507

Revenue Reserves - Summary of Receivable Related Allowances and Revenue Related Liabilities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Chargebacks and Rebates
Valuation And Qualifying Accounts Disclosure [Line Items]
Beginning balance	$ (428)
Provision related to current period sales	(2,515)
Credit or payments made during the period	1,620
Ending balance	(1,323)
Distribution Fees, Cash Discounts and Patient Assistance
Valuation And Qualifying Accounts Disclosure [Line Items]
Beginning balance	(240)
Provision related to current period sales	(1,879)
Credit or payments made during the period	1,254
Ending balance	$ (865)

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Line Items]
U.S. federal statutory tax rate, percent	21.00%	35.00%
Limitation of taxable income for NOL carryforward percentage	80.00%
Tax cuts and jobs act description	On December 22, 2017, the President of the United States signed into law Public Law No. 115-97, commonly referred to as the Tax Reform Act, following its passage by the United States Congress. The Tax Act made significant changes to U.S. federal income tax laws, including reduction of the corporate tax rate from 35.0% to 21.0%, limitation of the deduction for net operating losses to 80.0% of current year taxable income and elimination of net operating loss carrybacks, one-time taxation of offshore earning at reduced rates regardless of whether they are repatriated, elimination of U.S. tax on foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions for depreciation expense over time, and modifying or repealing many business deductions.
Income tax expense from discontinued operations		$ 23,299,000
Uncertain income tax positions	$ 0
Federal
Income Taxes [Line Items]
Net operating loss carryforwards	96,400,000	41,500,000
State
Income Taxes [Line Items]
Net operating loss carryforwards	44,500,000	20,200,000
Tax credit carryforwards	$ 700,000	$ 500,000
Earliest Tax Year \| Federal
Income Taxes [Line Items]
Operating losses, begin to expiration year	2037
Tax credits, begin to expiration year	2037

Income Taxes - Summary of Significant Components of Provisions for Income Taxes Attributable to Operations (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Current
Federal	$ 12,051
State	710
International	2
Total current	12,763
Deferred
Federal	9,636
State	902
Total deferred	10,538
Total income tax benefit from continuing operations	$ 23,301

Income Taxes - Schedule of Loss from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
US	$ (53,692)	$ (55,885)
International	3	(8)
Loss before income taxes	$ (53,689)	$ (55,893)

Income Taxes - Schedule of Tax Effects of Temporary Differences Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal losses carryforward	$ 20,251	$ 8,454
Intangible assets	4,210	4,470
State losses carryforward	2,260	1,246
Other	1,543	1,262
Stock compensation	844	1,128
Other tax credits	713	502
Fixed assets	488	309
Deferred tax asset	30,309	17,371
Prepaid expenses		(224)
Deferred tax liability		(224)
Valuation allowance	$ (30,309)	$ (17,147)

Income Taxes - Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax from Continuing Operations (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal tax at statutory rates	21.00%	35.00%
State taxes, net of federal benefit	2.50%	2.40%
Change in valuation allowance	(24.50%)	22.70%
Tax credits	0.40%	0.60%
Permanent differences	(0.20%)	(0.30%)
Other	0.80%	(1.30%)
Tax Reform	0.00%	(17.40%)
Total income tax benefit	0.00%	41.70%

Leases and Contingencies - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Leases [Abstract]
Operating leases expiration period	2020-04
Total lease expense	$ 1.2	$ 1.7

Fair Value Measurements - Additional Information (Details)	Dec. 31, 2018 USD ($)
Fair Value Disclosures [Abstract]
Fair value assets, level 1 to level 2 transfers	$ 0
Fair value assets, level 2 to level 1 transfers	$ 0