Note 5 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 5. COMMITMENTS AND CONTINGENCIES

Lease Agreements

The Company leases office space under operating lease agreements, expiring in September 2023 and June 2024. The office leases require the Company to pay for maintenance, and insurance. Rental expense under these agreements was $0.03 million and $0.01 million for the three months ended September 30, 2022 and 2021, respectively, and was $0.09 million and $0.02 million for the nine months ended September 30, 2022 and 2021, respectively.

Operating lease right-of-use assets of $0.2 million are included in other assets in the Company's unaudited consolidated balance sheets. Operating lease liabilities are included in other current and non-current liabilities in the Company’s unaudited consolidated balance sheets.

All the Company’s existing leases as of September 30, 2022 are classified as operating leases and have a weighted average remaining lease term of 1.4 years. Certain of the Company’s existing leases have fair value renewal options, none of which the Company considers certain of being exercised or included in the minimum lease term. The discount rate used in the calculation of the Company’s lease liability ranges from 7.25% to 9.75%.

A maturity analysis of the Company’s operating leases follows:

Future undiscounted cash flows:
2022	$	33,942
2023		117,917
2024		31,838
Total		183,697
Discount factor		(11,928	)
Lease liability		171,769
Current lease liability		(125,677	)
Non-current lease liability	$	46,092

Purchase Commitments

The Company has supply agreements with its contract manufacturer and packager for VAZALORE which contain minimum annual purchase commitments that started in 2021 and continue through 2025. The minimum annual purchase commitments are intended to ensure that manufactured product is available when required to enable the Company to meet its expected market demand for VAZALORE.