Note 4 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

4. Commitments and Contingencies

In

July 2015,

the Company entered into a manufacturing services agreement with Lonza Ltd, or (“Lonza”) for the processing, development and manufacturing of the active pharmaceutical ingredient (“API”) in its lead product candidate, vonapanitase. Under the agreement, the Company will issue purchase orders authorizing Lonza to manufacture API batches and will pay for the services and batches in accordance with terms and assumptions in the agreement and to be set forth in a project plan. As of

March 31, 2018,

the Company has issued a purchase order for

7.6

million Swiss Francs, approximately

$8.0

million at current exchange rates, for the manufacturing of

three

batches that commenced in

July 2017

and

one

batch to commence by the end of

2019.

As of

March 31, 2018,

all of the services related to the

three

batches that commenced in

July 2017

have been rendered under this purchase order.

Future minimum payments required under operating leases as of

March 31, 2018

are summarized as follows (in thousands):

Year Ending December 31:	Amount
2018		204
2019		207
Total minimum lease payments	$	411

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

March 31, 2018,

the Company has provided a security deposit in the amount of

$22,000

to the lessor.

Restricted cash related to facilities leases

As of

March 31, 2018

and

December 31, 2017,

the Company had

$

22,000

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

March 31, 2018

and

December 31, 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.