Note 7 - Long-term Debt

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Long-term Debt [Text Block]

Note 7  – Long-term Debt

Long-term debt consists solely of amounts due under the Deerfield Loan for the periods presented:

	June 30,		December 31,
(in thousands)	2017		2016
Current portion	$	12,500	$	-
Non-current portion		12,500		25,000
Total Deerfield Loan	$	25,000	$	25,000

The principal amount of the loan is payable in

two

equal annual installments of

$12.5

million, payable in each of

February 2018

and

2019.

See

, “Note

9

– Long-term Debt” in the Notes to Consolidated Financial Statements in our

2016

Form

10

-K.

The following amounts comprise the Deerfield Loan interest expense for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2017		2016		2017		2016
Amortization of prepaid interest expense	$	273	$	544	$	543	$	1,088
Cash interest expense		257		-		511		-
Total interest expense	$	530	$	544	$	1,054	$	1,088

Amortization of prepaid interest expense represents non-cash amortization of

$5

million of units

purchased by Deerfield in our

July 2015

public offering and accepted in satisfaction of

$5

million of future interest payments calculated at an interest rate of

8.75%

under the Deerfield Loan. Cash interest expense represents interest at an annual rate of

8.25%

on the outstanding principal amount, paid in cash on a quarterly basis.