Note 5 - Commitments and Contingencies

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

5.

 

Commitments and Contingencies

Operating Lease

 

The Company’s facility is located in Waltham, Massachusetts. In

July 2018,

it amended the lease extending its expiration to

September 2019.

During the

three

and

nine

months ended

September 30, 2019,

it recognized operating lease expense of

$0.1

million and

$0.2

million, respectively including property taxes and routine maintenance expense, which approximated its cash payments for the period. The lease expired as of

September 30, 2019,

and therefore the condensed consolidated balance sheet does

not

include an operating lease right-of-use asset or an operating lease liability in other assets and other current liabilities, respectively. As of

September 30, 2019,

there are

no

future minimum payments required under the operating lease. As of

September 30, 2019,

the Company has provided a security deposit in the amount of

$22,000

to the lessor. The security deposit will be returned within

30

days of the expiration of the lease which occurred on

September 30, 2019.

Restricted cash related to facilities leases

As of

September 30, 2019

and

December 31, 2018,

the Company had

$22,000

in an outstanding letter of credit to be used as collateral for leased premises. As of

September 30, 2019

and

December 31, 2018,

the Company pledged an aggregate of

$22,000

to the bank as collateral for the letter of credit, which is included in other current assets and non-current assets, respectively. The security deposit will be returned within

30

days of the expiration of the lease which occurred on

September 30, 2019.

6. Commitments and Contingencies

Significant Contracts and Agreements

In

February 2002,

the Company entered into an agreement to license certain intellectual property with Johns Hopkins University. The agreement calls for payments to be made by the Company upon the commencement of product sales, in the form of a royalty of

2.5%

on net sales of the product. As of

December 31, 2018

the Company has

not

commenced product sales and therefore has recognized

no

royalties on product sales.

Operating Leases

The Company has various non-cancellable operating leases for facilities and office equipment that expire at various dates through

2019.

In

August 2017,

the Company entered into an Amendment (the “Lease Amendment”) to the existing Lease Agreement dated

July 13, 2009 (

the “Lease Agreement”), with Boston Properties Limited Partnership (“Lessor”) pursuant to which the Company has agreed to (i) extend the term of the lease for a period of

fifteen

(

15

) months from

June 30, 2018

until

September 30, 2019

and (ii) increase the Company’s office space under the Lease Agreement by

2,552

square feet of additional property for a total of approximately

7,500

square feet of property (the “Leased Property”). The Leased Property is located at

200

West St., Waltham, Massachusetts. In addition, the Company has the option to extend the term of the Lease Agreement for an additional

one

-year period upon the Company’s written notice to the Lessor at least

six

months prior to the expiration of the term. Rental expense was

$0.3

million,

$0.2

million and

$0.2

million for the years ended

December 31, 2018,

2017

and

2016,

respectively.

Future minimum payments required under operating leases as of

December 31, 2018

are summarized as follows (in thousands):

Year Ending December 31:	Amount
2019		207
Total minimum lease payments	$	207

In addition to the base rent, the Company is also responsible for its share of operating expenses and real estate taxes, in accordance with the terms of the lease agreement. As of

December 31, 2018,

the Company has provided a security deposit in the amount of

$22,000

to the lessor.

Restricted cash related to facilities leases

At

December 31, 2018

and

2017,

the Company had

$22,000

,

respectively, in an outstanding letter of credit to be used as collateral for leased premises. At

December 31, 2018

and

2017,

the Company pledged an aggregate of

$22,000

,

to the bank as collateral for the letter of credit, which is included in other non-current assets.