Note 5 - Severance Liability

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

5. Severance Liability

During 2012, we entered into a separation agreement and a release with our former Chief Executive Officer and member of our board of directors, and in 2013 we entered into a separation agreement and a release with a former vice president level employee. Under the terms of these agreements and releases, we agreed to provide each individual with salary continuation and medical coverage payments for predetermined lengths of time. In addition, we agreed to provide the former Chief Executive Officer with certain stock option benefits including the grant of an additional stock option, accelerated vesting of all then-outstanding options previously granted to him, and an extension of the post-employment exercise period for all of his options, including the newly granted one. All costs associated with the modification of his options and the costs of the new option grant were immediately recognized upon his separation.

During the three-month period ended September 30, 2014, we agreed to provide a terminated employee a lump sum salary payment and 4 months of medical coverage payments which will end December 31, 2014.

The following table summarizes the salary continuation and medical coverage payments during the three-month period ended September 30, 2014.

	Compensation			Medical Coverage			Total
Balance at June 30, 2014	$	—		$	—		$	—
Accrued interest		—			—			—
Separation agreement August 2014		37,500			10,500			48,000
Payments		(37,500	)		(2,600	)		(40,100	)
Balance at September 30, 2014	$	—		$	7,900		$	7,900

The following table summarizes the salary continuation and medical coverage payments during the nine-month period ended September 30, 2014.

	Compensation			Medical Coverage			Total
Balance at December 31, 2013	$	62,900		$	—		$	62,900
Accrued interest		1,700			—			1,700
Separation Agreement August 2014		37,500			10,500			48,000
Payments		(102,100	)		(2,600	)		(104,700	)
Balance at September 30, 2014	$	—		$	7,900		$	7,900