6.    Commitments and Contingencies

Minimum payments

Our manufacturing agreement, as amended, with DPT Laboratories, Ltd. (“DPT”), our contract manufacturer for our Probuphine product, provided for a minimum annual manufacturing fee of $1.0 million. In the event we did not have DPT manufacture sufficient quantities of product to exceed the minimum annual manufacturing fee, DPT may invoice us for the amount of the shortfall.

Legal Proceedings

A legal proceeding has been initiated by a former employee alleging wrongful termination, retaliation, infliction of emotional distress, negligent supervision, hiring and retention and slander. An independent investigation into this individual’s allegations of whistleblower retaliation, while still an employee, was conducted utilizing an outside investigator and concluded that such allegations were not substantiated. We intend to vigorously defend the lawsuit (which we have compelled into arbitration); however, in light of

our cash position, there can be no assurance that the defense and/or settlement of this matter will not have a material adverse impact on our business.