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Note 5 - Commitments and Contingencies
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
5.
Commitments and Contingencies
 
Leases
 
We lease
28,275
square feet of laboratory and office space in San Diego, California under a lease which began on
December
1,
2016
and expires on
April
15,
2024.
We have
one
5
-year option to renew this lease. We also lease
26,067
square feet of laboratory, office and warehouse space in Redwood City, California and
1,898
square feet of office space in Jersey City, New Jersey. The lease for the Redwood City space is under a lease expiring on
May
31,
2019.
The lease for the Jersey City office space expires on
June
30,
2018.
The annual rent expense for all properties is
$2.0
million. 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,
 
2016
are as follows (in thousands):
 
 
 
 
Operating Leases
 
Years ended December 31,
        
2017
   $
2,259
  
2018
    
2,553
  
2019
    
1,824
  
2020
    
1,424
  
2021
    
1,466
  
Thereafter
    
3,532
  
Total
   $
13,058
  
 
 
Rent expense under all operating leases totaled
$2.1
million,
$1.5
million and
$1.4
million for the years ended
December
 
31,
 
2016,
2015
and
2014,
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,
 
2016,
our purchase obligations of
$6.7
million primarily consisted of commitments with
third
-party manufacturers in connection with the manufacturing of SUSTOL, as well as commitments with various vendors for sales and marketing support and clinical and preclinical studies. For the year ended
December
31,
2016,
$4.6
million of the total purchase obligations were not included in our consolidated financial statements. We intend to use our current financial resources to fund our commitments under these purchase obligations.