Note 1 - Organization and Operations

9 Months Ended

Sep. 30, 2014

1.	Organization and operations

The Company

Proteon Therapeutics, Inc. (the “Company”) is an early-stage biopharmaceutical company engaged in the development of elastases to treat the growing medical needs of renal and vascular disease patients. The Company was formed in June 2001 and later was incorporated on March 24, 2006. During 2013, the Company formed a wholly-owned subsidiary, organized in the United Kingdom. As of September 30, 2014, there has been no activity in this subsidiary other than its formation. The Company completed its initial public offering of its common stock, $0.001 par value per share (“Common Stock”) on October 27, 2014 (the “IPO”). Since inception, the Company has been primarily involved in research and development activities.

The Company devotes substantially all of its efforts to product research and development, initial market development and raising capital. The Company has not generated any product revenue related to its primary business purpose to date and is subject to a number of risks similar to those of other development stage companies, including dependence on key individuals, competition from other companies, the need for development of commercially viable products and the need to obtain adequate additional financing to fund the development of its product candidates. The Company is also subject to a number of risks similar to other companies in the life sciences industry, including regulatory approval of products, uncertainty of market acceptance of products, competition from substitute products and larger companies, the need to obtain additional financing, compliance with government regulations, protection of proprietary technology, dependence on third parties, product liability and dependence on key individuals.

The Company had an accumulated deficit of $116.5 million as of September 30, 2014. The Company had cash, cash equivalents and investments of $21.7 million as of September 30, 2014. Including the proceeds from its IPO , which closed on October 27, 2014 (see Note 11), the Company believes that its existing cash and cash equivalents and available-for-sale investments will be sufficient to fund operations and capital expenditures into 2018.