Note 1 - Organization and Operations

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Nature of Operations [Text Block]

1. Organization and Operations

The Company

Proteon Therapeutics, Inc. (the “Company”) is a late-stage biopharmaceutical company focused on the development of novel,

first

-in-class pharmaceuticals to address the medical needs of patients with kidney and vascular disease. The Company was formed in

June

2001

and incorporated on

March

24,

2006.

During

2013,

the Company formed a wholly-owned subsidiary, organized in the United Kingdom, Proteon Therapeutics Limited. As of

December

31,

2016,

there has been no activity in this subsidiary other than its formation. During

2014,

the Company formed a wholly-owned Massachusetts Securities Corporation subsidiary as a holding company for its available-for-sale investments, Proteon Securities Corp. On

April

20,

2016,

the Company formed a wholly-owned holding company in Delaware, Proteon International Holdings, Inc. (“Proteon International”). On

May

4,

2016,

Proteon International formed a wholly-owned subsidiary company in Bermuda, Proteon Bermuda Limited (“Proteon Bermuda”). On

June

2,

2016,

Proteon Bermuda formed a wholly-owned subsidiary company in Ireland, Proteon Ireland Limited. 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 additional risks similar to other companies in the biotechnology industry, including regulatory approval of products, uncertainty of market acceptance of products, competition from substitute products and larger companies, compliance with government regulations, protection of proprietary technology, dependence on

third

parties and product liability.

As of

December

31,

2016,

the Company had cash, cash equivalents and available-for-sale investments of

$41.3

million. The Company believes that its existing cash, cash equivalents and available-for-sale investments will be sufficient to fund operations and capital expenditures into the

third

quarter of

2018

based on budgeted rates. The Company had an accumulated deficit of

$159.8

million as of

December

31,

2016

and has not yet earned revenues other than the

$2.9

million recognized in the

third

quarter of

2014

related to the expiration of rights and obligations in connection with the

2009

agreement.