Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

7. Commitments and Contingencies

Financing Agreements

In 2011, we entered into a facility agreement with a third party pursuant to which we issued 8.5% promissory notes in the aggregate principal amount of $20.0 million. In connection with the facility agreement, we issued the lender six-year warrants to purchase 1,090,910 shares of our common stock at an exercise price, after adjustment, of $6.88 per share (See Note 9, “Warrant Liability” for further discussion). We also entered into a royalty agreement with the lender in exchange for $3.0 million (see Note 8, “Royalty Liability” for further discussion), as well as an option to repurchase the royalty right for $40 million.

On February 6, 2013, the facility agreement was amended to provide that the exercise price of the warrants could be satisfied through a reduction in the principal amount of our outstanding indebtedness to the holder. In February and March 2013, all of such warrants were exercised, resulting in a reduction of our outstanding indebtedness of $7.5 million and, accordingly, cancellation of our obligation to make the 2014, 2015 and 2016 installment payments under the facility agreement. This resulted in a gain of $1.9 million which was recorded in Other Income (Expense). On April 1, 2013, we made the final principal payment of $2.5 million under the facility agreement.

Lease Commitments

We lease facilities under operating leases that expire at various dates through June 2016. Rent expense was $211,000, $209,000, and $210,000 for years ended December 31, 2015, 2014, and 2013, respectively.

The following is a schedule of future minimum lease payments at December 31, 2015 (in thousands):

2016	$	106
2017 and thereafter		—
	$	106

Legal Proceedings

There are no ongoing legal proceedings against our company.