3.	Sale of Assets

In October 2017, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Ferring to sell the worldwide rights, including certain assets, related to the ZOMAJET™ needle-free auto injector device product line for a total purchase price of $14.5 million.

The purchase price is to be paid in four installments consisting of the following: a $2.0 million upfront payment, which was received upon entry into the Asset Purchase Agreement and the transfer of certain assets; a second installment of $2.75 million received upon delivery of certain documentation and satisfaction of certain conditions primarily related to product manufacturing, which occurred in February 2018; a third installment of $4.75 million payable upon satisfaction of certain conditions, including further document transfer, the successful completion of a regulatory audit by a notified body, and a pilot manufacturing run under Ferring’s supervision; and a final installment of $5.0 million upon Ferring’s receipt of the CE Mark needed to continue to commercialize the product in certain territories and the final transfer of certain product-related inventory, equipment and agreements to Ferring (the “Completion Date”), which is expected to occur by the end of 2018.

For the year ended December 31, 2017, the Company recorded a gain on sale of assets upon receipt of the non-refundable upfront payment from Ferring and transfer of certain manufacturing equipment and patents as follows:

Proceeds from sale of assets	$	2,000
Less:
Net book value of molds and equipment transferred		933
Net book value of patents transferred		108
Payment of transaction costs		99
Gain on sale of assets	$	860

The Company will continue to manufacture and supply needle-free devices until the Completion Date and will receive payment for devices manufactured and supplied to its partners, and a royalty on net product sales, in accordance with the existing license and supply agreements.