Note J - Severance Expense

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

J. Severance Expense

In 

February 2020,

the Company eliminated the chief business officer role and Gordon K. Johnson separated from the Company. In connection with his separation, Mr. Johnson is entitled to severance benefits as documented in his Amended and Restated Employment Agreement entered into in

June 2015.

The severance benefits consist of personnel and other related charges of approximately

$0.4

million and stock compensation expense of approximately

$0.4

million related to the acceleration of vesting on unvested shares subject to certain stock options. These severance benefits are presented as severance expense in the unaudited condensed statements of operations for the

nine

months ended

September 30, 2020

. As of

September 30, 2020

, the Company had accrued severance expense recorded within accounts payable and accrued expenses in the amount of

$0.1

million. As of

September 30, 2019,

there was

no

accrued severance. For the

three

months ended

September 30, 2020

and 

three

and

nine

months ended

September 30, 2019

there was

no

 severance expense.