Note 16 - Related Party Transactions

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

16.

RELATED PARTY TRANSACTIONS     

Related Party Financing

See Note

9,

“Related Party Notes Payable” for a description of the Promissory Note issued on

February 27, 2019,

as amended on

June 25, 2019

and Note

12,

“Stockholders’ Equity (Deficit)” for a description of the Company’s financing transactions in

June 2019

and

August 2019.

Related Party Revenue 

The Company recognized related party revenues from product sales of

$173

thousand for the

three

months ended

March 31, 2020.

The Company recognized related party revenues from license and collaboration fees of

$41

thousand for the

three

months ended

March 31, 2019.

In fulfillment of the performance obligations under the Purchase Agreement with China Pioneer, the Company supplied product with a cost of

$90

thousand and

$0

for the

three

months ended

March 31, 2020

and

2019.

Related party accounts receivable was

$173

thousand and

$0

as of

March 31, 2020

and

December 31, 2019,

respectively. See Note

14,

“License, Collaboration and Distribution Agreements” for additional information regarding the Company’s distribution agreements with China Pioneer, the Company’s

second

largest stockholder.

Related Party Expenses

During the

three

months ended

March 31, 2020,

the Company purchased

KN95

masks from Earntz Nonwoven Co., Ltd. through an affiliate of China Pioneer. As of

March 31, 2020

and

2019,

related party accounts payable was

$93

thousand and

$0.

The Company paid related party fees of

$62

thousand and

$70

thousand for the

three

months ended

March 31, 2020

and

2019,

respectively. A fee of

$50

thousand was paid to Director Bob Wu during both the

three

months ended

March 31, 2020

and

March 31, 2019,

which represented the consulting fees pursuant to that certain Consulting Agreement, between the Company and China Kington, dated

March 1, 2019.

A fee of

$12

thousand was paid to China Kington during the

three

months ended

March 31, 2020

and represented the broker fee for the exercise of the

June 2019

warrants by

one

of the warrant holders, and was recorded as a reduction to additional paid-in capital from the exercise of the warrants. A fee of

$20

thousand paid to China Kington during the

three

months ended

March 31, 2019

represented the broker fee for the issuance of the Promissory Note to Pioneer Pharma (Hong Kong) Company Ltd., and was recorded as an offset to the related party notes payable in the condensed consolidated balance sheet. See Note

9,

“Related Party Notes Payable”, and Note

11,

“Warrant Liability” for additional information regarding such fees.