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Note 9 - Related Party Note Payable
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Related Party Notes Payable [Text Block]
NOTE
9.
RELATED PARTY NOTE PAYABLE
 
On
February 27, 2019,
the Company issued a
$1.0
million promissory note payable to Pioneer Pharma (Hong Kong) Company Ltd. (“Pioneer Pharma”), which was amended on
June 25, 2019
and
May 14, 2020 (
the “Promissory Note”). The Promissory Note provided for an interest payment of
$150
thousand which was initially amended to a payment of
$300
thousand and subsequently to the delivery of
65,178
units of NeutroPhase (
40ml
) to Pioneer Pharma, inclusive of
40,644
units previously delivered in the
first
quarter of
2020.
The
second
amendment to the Promissory Note also provided the Company with the right to repay the note at any time. On
May 14, 2020,
the Company repaid the
$1.0
million principal balance of the Promissory Note using proceeds raised through the ATM program (see Note
12,
“Stockholders' Equity (Deficit)”). As of
September 30, 2020,
the remaining interest payable was
$104
thousand, which was settled through the delivery of
24,534
units of NeutroPhase subsequent to
September 30, 2020
in
October 2020.
Upon full repayment of principal and interest during the
fourth
quarter of
2020,
the Company was released from the Promissory Note with Pioneer Pharma.
 
In connection with the Promissory Note, the Company
paid China Kington a
2%
fee for brokering the transaction and entered into a consulting agreement with China Kington for a term of
one
year, which expired on
March 1, 2020.
Bob Wu, acting in a dual role as a member of the Company's Board of Directors and as principal of China Kington, was paid
$100
thousand pursuant to such consulting agreement. Upon the expiration of the original consulting agreement, the parties entered into a consulting agreement, in which
no
cash compensation will be paid. Debt issuance costs associated with the issuance of the Promissory Note of
$20
thousand was recognized and recorded as an offset to the related party note payable in the condensed consolidated balance sheet.
 
The interest expense recognized, including amortization of the issuance costs, was
$0
and
$75
thousand during the
three
and
nine
months ended
September 30, 2020,
respectively. The interest expense recognized, including amortization of the issuance costs, was
$45
thousand and
$175
thousand during the
three
and
nine
months ended
September 30, 2019,
respectively.