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Commitments and Contingencies
9 Months Ended
Sep. 30, 2022
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

3. Commitments and Contingencies

Leases

The Company’s operating lease for office space in Solana Beach, California was extended in February 2022 and had an expiration date of October 31, 2022, subject to the landlord’s option to cancel upon 30 days written notice. The Company extended this lease for an additional 12 months, effective November 1, 2022.

As of September 30, 2022, the Company has future minimum lease payments under its existing facility lease of approximately $39,000 payable in 2022 and $134,000 payable in 2023. The remaining lease term is 1.08 years and the discount rate used was 10% for the office lease as of September 30, 2022.

The short-term lease expense of $37,281 and $111,843 is included in the general and administrative expense for the three and nine months ended September 30, 2022, respectively. The operating lease expense of $35,816 and $92,588 was included in general and administrative expense for the three and nine months ended on September 30, 2021, respectively. The cash paid for the operating lease liability was $37,281 and $99,417 for the three and nine months ended on September 30, 2021, respectively. The cash paid for the operating lease liability was $12,427 for the three and nine months ended on September 30, 2022.

Legal Proceedings

On February 25, 2022, the Company received a letter notifying us that Teva Pharmaceuticals, Inc. (“Teva”) submitted to FDA an abbreviated new drug application, or ANDA, for a generic version of Gimoti (metoclopramide hydrochloride) nasal spray eq. 15 mg base/spray that contains Paragraph IV certifications with respect to two of our patents covering Gimoti, U.S. Patent Nos. 8,334,281, expiration date May 16, 2030; and 11,02,0361, expiration date December 22, 2029. These patents are listed in FDA’s list of Approved Drug Products with Therapeutic Equivalence Evaluations, commonly referred to as the Orange Book, for Gimoti. The certifications allege these patents are invalid or will not be infringed by the manufacture, use or sale of Teva’s metoclopramide hydrochloride nasal spray eq. 15 mg base/spray. In April 2022, the Company initiated litigation in the United States District Court for the District of New Jersey, alleging that Teva infringes the patents covering Gimoti. Teva has denied all material allegations and asserted counterclaims of non-infringement and invalidity. The Company has not recorded any loss in connection with this matter because it believes that a loss is neither probable nor estimable at this time.