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Note 6 - Realignment of Goals and Objectives and New Development Focus
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]
6.
Realignment of Goals and Objectives and New Development Focus
 
Following the approval of SUSTOL and consistent with our transition into a commercial-stage biotechnology company, we realigned our goals and objectives and refocused our development efforts t
o the area of postoperative pain management. On
October 18, 2016,
we entered into a lease agreement for new office and laboratory space in San Diego, California, which became our corporate headquarters in
December 2016.
On
September 30, 2016,
the board of directors accepted the resignations of
three
executive officers, and these executive officers and other employees directly affected by the realignment and refocusing were, or will be, provided with
one
-time severance payments on termination, continued benefits for a specified period of time and outplacement assistance.
 
We expect to incur total expenses of
$9.
6
million in connection with these activities,
$5.7
million of which is primarily for severance and
$3.9
million of which is for non-cash, stock-based compensation expense. From
September 30, 2016
through
December 31, 2017,
we have recognized expense of
$9.6
million.
 
We expect to make the final payment resulting from the realignment of our goals and objectives and new development focus in the
third
quarter of
2018.
As of
December 31, 2017,
we have paid
$4.6
million of the total
$5.7
million cash charges. As of
December 31, 2017,
the remaining
$1.1
million was included in accrued payroll and employee liabilities in the consolidated balance sheets.
 
F
or the year ended
December 31, 2017,
total expenses related to the realignment were
$1.8
million, with
$1.5
million included in research and development expense and
$0.3
million in general and administrative expense.
 
We have accounted for these expenses in accordance with Accounting Standard Codification
No.
420,
Exit or Disposal Cost Obligations
.