Note 7 - Commitments and Contingencies	3 Months Ended
Mar. 31, 2020
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 7 - Commitments and Contingencies Leases On April 16, 2018, the Company executed a service agreement with CIC Innovation Communities, LLC, to establish and lease offices at the Cambridge Innovation Center in Cambridge, Massachusetts. The Company does not have a long-term agreement in place to occupy this location, but rather occupies on a month-to-month basis. On April 16, 2018, the Company also executed a space utilization agreement with the Board of Regents of the University of Texas System to establish and lease offices at the Dell Medical School in Austin, Texas. The Company pays $2,050 per month to occupy this location and the lease is effective until April 30, 2020. The Company is currently negotiating an extension of the lease. Commitments MD Anderson Cancer Center We have entered into a clinical study agreement with MD Anderson in Houston, Texas, to administer a Phase I/II clinical trial, combining FUS1 -nanoparticles and Erlotinib in Stage IV lung cancer patients. FUS1 is sometimes referred to as TUSC2. The trial was expected to run through the end of 2018 with a projected total cost of approximately $2 million. Payments are due and payable when invoiced throughout the clinical trial period. The agreement may be terminated at any time. With osimertinib now considered a new standard of care in the U.S. for NSCLC with an EGFR mutation and our receipt of FDA Fast-Track Designation for use of Oncoprex combined with Osimertinib, we are prioritizing this program in lieu of the combination trial of Oncoprex and erlotinib. In July 2018, the Company entered into a two -year sponsored research agreement with MD Anderson to sponsor preclinical studies focused on the combination of TUSC2 with an immunotherapy with a projected total cost of approximately $2 million. Payments are due and payable when invoiced throughout the clinical trial period. The agreement may be terminated at any time. In 2009, we agreed to assume certain contractual and other obligations of IRI in consideration for the sublicense rights, expertise, and assistance associated with the assignment of certain technologies and intellectual property. We also agreed to pay royalties of 1% on sales of resulting licensed products, for a period of 21 years following the termination of the last of the MD Anderson License Agreement and Sublicense Agreement, to IRI and we assumed patent prosecution costs and an annual minimum royalty of $20,000 payable to the National Institutes of Health. National Institutes of Health Our $191,393 payment obligation to the National Institutes of Health (“NIH”) represented a current obligation, of which $15,393 of 2016 patent prosecution costs were paid in the fourth quarter of 2016 and $176,000 was included in Accounts Payable at December 31, 2016 ( consisting of accrued annual royalties of $140,000 and patent costs of $36,000 ). During the first quarter of 2017, we modified the terms of our accrued royalty obligation to NIH. Under the modified agreement, NIH agreed to extinguish $120,000 of the accrued royalties payable to them in consideration for payment by us of (i) accrued patent costs of $36,000, (ii) a royalty payment of $20,000, and (iii) a contingent payment of $240,000, increasing at $20,000 per year starting in 2018, to be paid upon our receipt of FDA approval. The payments for the patent costs of $36,000 and royalties of $20,000 were paid during the second quarter of 2017. As a result of our modified agreement with the NIH, we have recognized the exchange of the $120,000 fixed obligation for the $240,000 contingent obligation as a $120,000 reduction to intellectual property expense (classified within general and administrative expense) during the first quarter of 2017. The $240,000 contingent obligation which increases annually by $20,000 and is $280,000 as of December 31, 2019 will be recognized when we obtain regulatory approval (the event that triggers the payment obligation). University of Pittsburgh As part of our License Agreement with the University of Pittsburgh in February 2020, we agreed to (i) an initial licensing fee of $25,000, (ii) annual maintenance fees of $25,000 for the first three years and $40,000 for each subsequent year following the first anniversary of the agreement, (iii) royalties between 1.5% to 3% of net sales of licensed technologies, (iv) an annual minimal royalty payment of $250,000 per year beginning in the year of the first commercial sale of licensed technology, (v) a share of non-royalty sublicense income of 20%, and (vi) milestone payments of an aggregate of $3,975,000 . Contingencies From time to time we may become subject to threatened and/or asserted claims arising in the ordinary course of our business. Management is not aware of any matters, either individually or in the aggregate, that are reasonably likely to have a material impact on our Company’s financial condition, results of operations or liquidity.

Note

- Commitments and Contingencies

Leases

April 16, 2018,

the Company executed a service agreement with CIC Innovation Communities, LLC, to establish and lease offices at the Cambridge Innovation Center in Cambridge, Massachusetts. The Company does

not

have a long-term agreement in place to occupy this location, but rather occupies on a month-to-month basis.

April 16, 2018,

the Company also executed a space utilization agreement with the Board of Regents of the University of Texas System to establish and lease offices at the Dell Medical School in Austin, Texas. The Company pays

$2,050

per month to occupy this location and the lease is effective until

April 30, 2020.

The Company is currently negotiating an extension of the lease.

Commitments

MD Anderson Cancer Center

We have entered into a clinical study agreement with MD Anderson in Houston, Texas, to administer a Phase I/II clinical trial, combining

FUS1

-nanoparticles and Erlotinib in Stage IV lung cancer patients.

FUS1

is sometimes referred to as

TUSC2.

The trial was expected to run through the end of

2018

with a projected total cost of approximately

million. Payments are due and payable when invoiced throughout the clinical trial period. The agreement

may

be terminated at any time. With osimertinib now considered a new standard of care in the U.S. for NSCLC with an EGFR mutation and our receipt of FDA Fast-Track Designation for use of Oncoprex combined with Osimertinib, we are prioritizing this program in lieu of the combination trial of Oncoprex and erlotinib.

July 2018,

the Company entered into a

two

-year sponsored research agreement with MD Anderson to sponsor preclinical studies focused on the combination of

TUSC2

with an immunotherapy with a projected total cost of approximately

million. Payments are due and payable when invoiced throughout the clinical trial period. The agreement

may

be terminated at any time.

2009,

we agreed to assume certain contractual and other obligations of IRI in consideration for the sublicense rights, expertise, and assistance associated with the assignment of certain technologies and intellectual property. We also agreed to pay royalties of

on sales of resulting licensed products, for a period of

years following the termination of the last of the MD Anderson License Agreement and Sublicense Agreement, to IRI and we assumed patent prosecution costs and an annual minimum royalty of

$20,000

payable to the National Institutes of Health.

National Institutes of Health

Our

$191,393

payment obligation to the National Institutes of Health (“NIH”) represented a current obligation, of which

$15,393

2016

patent prosecution costs were paid in the

fourth

quarter of

2016

and

$176,000

was included in Accounts Payable at

December 31, 2016 (

consisting of accrued annual royalties of

$140,000

and patent costs of

$36,000

). During the

first

quarter of

2017,

we modified the terms of our accrued royalty obligation to NIH. Under the modified agreement, NIH agreed to extinguish

$120,000

of the accrued royalties payable to them in consideration for payment by us of (i) accrued patent costs of

$36,000,

(ii) a royalty payment of

$20,000,

and (iii) a contingent payment of

$240,000,

increasing at

$20,000

per year starting in

2018,

to be paid upon our receipt of FDA approval. The payments for the patent costs of

$36,000

and royalties of

$20,000

were paid during the

second

quarter of

2017.

As a result of our modified agreement with the NIH, we have recognized the exchange of the

$120,000

fixed obligation for the

$240,000

contingent obligation as a

$120,000

reduction to intellectual property expense (classified within general and administrative expense) during the

first

quarter of

2017.

The

$240,000

contingent obligation which increases annually by

$20,000

and is

$280,000

as of

December 31, 2019

will be recognized when we obtain regulatory approval (the event that triggers the payment obligation).

University of Pittsburgh

As part of our License Agreement with the University of Pittsburgh in

February 2020,

we agreed to (i) an initial licensing fee of

$25,000,

(ii) annual maintenance fees of

$25,000

for the

first

three

years and

$40,000

for each subsequent year following the

first

anniversary of the agreement, (iii) royalties between

1.5%

of net sales of licensed technologies, (iv) an annual minimal royalty payment of

$250,000

per year beginning in the year of the

first

commercial sale of licensed technology, (v) a share of non-royalty sublicense income of

20%,

and (vi) milestone payments of an aggregate of

$3,975,000

Contingencies

From time to time we

may

become subject to threatened and/or asserted claims arising in the ordinary course of our business. Management is

not

aware of any matters, either individually or in the aggregate, that are reasonably likely to have a material impact on our Company’s financial condition, results of operations or liquidity.