Note 5 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Text Block]

5.	Commitments and Contingencies

Leases

We lease 26,067 square feet of laboratory, office and warehouse space in Redwood City, California under a lease expiring on November 30, 2016. We have the option to extend the lease for an additional three years. In addition, we currently lease 1,898 square feet of office space in Jersey City, New Jersey and 3,419 square feet of office space in San Diego, California. The lease for the Jersey City office space began on July 1, 2015 and expires on December 31, 2016, and the lease for the San Diego office space was extended in 2015 for an additional nine-month period ending on March 31, 2016. We believe our facilities are adequate and suitable for our current needs, and that we will be able to obtain new or additional leased space in the future when necessary.

We also lease certain office equipment under operating lease arrangements.

Annual future minimum lease payments as of December 31, 2015 are as follows (in thousands):

	Operating Leases
Years ended December 31,
2016	$	1,067
2017		3
2018		—
2019		—
2020		—
Thereafter		—
Total	$	1,070

Rent expense under all operating leases totaled approximately $1,502,000, $1,381,000 and $967,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

Clinical Development Agreements

We have entered into agreements with various vendors for the research and development of product candidates, which are generally cancellable anytime at our option. Under the terms of these agreements, the vendors provide a variety of services including conducting preclinical development, research, manufacturing clinical compounds, enrolling and recruiting patients, monitoring studies, data analysis and regulatory filing assistance. Payments under these agreements typically include fees for services and reimbursement of expenses. In addition, under certain agreements, we are subject to penalties in the event we permanently discontinue performance under these agreements.

Purchase Obligations

At December 31, 2015, our purchase obligations of $3,851,000 primarily consisted of commitments with third-party manufacturers in connection with the manufacturing of SUSTOL, as well as commitments with various vendors for clinical and preclinical studies. Approximately $3,192,000 of the total purchase obligations were not included in our consolidated financial statements for the year ended December 31, 2015. We intend to use our current financial resources to fund our commitments under these purchase obligations.