Note 10 - Cost-reduction Plan

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note

10.

Cost-Reduction Plan

On

May

20,

2016

we announced that we had committed to a cost-reduction plan in order to better utilize our resources on the implementation of our refocused clinical and corporate strategy. This cost-reduction plan includes a reduction in force across all of the Company’s departments. With the exception of an on-going lease obligation on our facility in San Diego, California, we completed this cost-reduction plan in the quarter ended

June

30,

2016.

As a result of this cost-reduction plan we incurred total costs of approximately

$470,000

comprised of

$413,000

for severance and other employee payments, and

$57,000

of non-cash costs for the modification of employee stock options. Of the total expense,

$312,000

is included in research and development expense and

$158,000

is included in general and administrative expense in our statement of operations for the year ended

December

31,

2016.

At

December

31,

2016,

all amounts have been paid.