Note 5 - Property and Equipment, Net

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

5. Property and Equipment, Net

Property and equipment, net consist of the following (in thousands):

		Balance as of
		September 30, 2022				December 31, 2021
Laboratory equipment		$	4,406			$	4,406
Leasehold improvements			5,838				5,838
Computer equipment and software			1,589				1,589
Construction in process			9,481				13,805
Tooling			826				826
Furniture and fixtures			250				250
			22,390				26,714
Less accumulated depreciation and amortization			(11,504	)			(10,786	)
Property and equipment, net		$	10,886			$	15,928

The Company has decided to realign its cost structure from a focus on commercialization to a focus on advancing its recently acquired late-stage development pipeline, namely the pre-filled syringes and Niyad product candidates. As a result, the Company has also decided to not focus any development resources on Zalviso in the United States, and does not expect to resubmit the Zalviso NDA in the foreseeable future. In addition, due to the termination of the agreements with Grünenthal for Zalviso in Europe and the related withdrawal of the Marketing Authorization in Europe in July 2022, the Company does not expect any revenues from Zalviso in Europe in the foreseeable future. Accordingly, the Company determined that it is no longer probable that it will realize the future economic benefit associated with the costs of the Zalviso-related purchased equipment and manufacturing-related facility improvements the Company has made at its contract manufacturer and, therefore, recorded a non-cash impairment charge of $4.9 million to the Zalviso-related assets for the nine months ended September 30, 2022. The impairment charge was recorded as operating expense in the condensed consolidated statement of operations. Depreciation and amortization expense was $0.2 million and $0.7 million for the three and nine months ended September 30, 2022, respectively, and $0.3 million and $0.8 million for the three and nine months ended September 30, 2021, respectively.