Note 10 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Text Block]

10.  Commitments and Contingencies

The Company has entered into various agreements with third parties and certain related parties in connection with the research and development activities of its existing product candidates as well as discovery efforts on potential new product candidates. These agreements include fixed obligations to sponsor research and development activities and minimum royalty payments for licensed patents. These amounts do not include any additional amounts that the Company may be required to pay under its license agreements upon the achievement of scientific, regulatory and commercial milestones, including milestones such as the submission of an investigational new drug application to the FDA and the first commercial sale of the Company's products in various countries. As of December 31, 2011 the Company is uncertain as to whether any of these contingent events will become realized. The Company is also party to five agreements that require it to make milestone payments, royalties on net sales of the Company's products, and payments on sublicense income received by the Company. As of December 31, 2011, $100,000 in milestone payments have been made under one of these agreements. There were no milestone payments or royalties on net sales accrued for any of these agreements as of December 31, 2011 and 2010 as none were due.

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business. The Company accrues for liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. For all periods presented, the Company is not a party to any pending material litigation or other material legal proceedings.

The Company has entered into employment agreements with three key executives who, if terminated by the Company without cause as described in these agreements, would be entitled to severance pay.

In December 2011, the Company entered into a capital lease for scientific equipment in the amount of $255,150. The terms of the lease required an upfront payment of $82,983, and monthly payments of $7,616 for 36 months once the lease term begins in March 2012.

The Company leases laboratory facilities, office facilities, and equipment under various operating lease agreements. The Company leases office and laboratory space in Buffalo, New York under a non-cancelable operating lease that expires in June 2012. The lease provides for two renewal periods of two years each at the option of the Company. The Company also leases office and laboratory space in Moscow, Russia under two non-cancelable operating leases that expire in June 2012 and December 2012. The Company leases office space in Rosemont, Illinois under a non-cancelable operating lease that expires in August 2013. The Company recognizes rent expense on a straight-line basis over the term of the related operating leases. For the years ended December 31, 2011, 2010 and 2009, total rent expense was $396,667, $345,722 and $367,607, respectively.

Future minimum lease payments under operating and capital lease obligations as of December 31, 2011 are as follows: 

	Operating Lease		Capital Lease
2012	$	225,505	$	76,160
2013		51,267		91,392
2014		8,625		91,392
2015		6,560		15,232
2016		3,370
Total minimum lease payments	$	295,327	$	274,176