Note 5 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE 5. COMMITMENTS AND CONTINGENCIES

Lease Agreements

The Company presently leases office space under operating lease agreements, expiring in September 2023, and June 2024. The office leases require the Company to pay for its maintenance, and insurance. Rental expense under these agreements was $0.03 million and $0.09 million for the three months ended March 31, 2022 and 2021, respectively.

Operating lease ROU assets are included in right of use assets in the Company's unaudited consolidated balance sheets. Operating lease liabilities are included in other current and non-current liabilities in the Company’s unaudited consolidated balance sheets.

All the Company’s existing leases as of March 31, 2022 are classified as operating leases and have a weighted average remaining lease term of 1.9 years. Certain of the Company’s existing leases have fair value renewal options, none of which the Company considers certain of being exercised or included in the minimum lease term. The discount rate used in the calculation of the Company’s lease liability ranges from 7.25% to 9.50%.

A maturity analysis of the Company’s operating leases follows:

Future undiscounted cash flows:
2022	$	98,756
2023		113,823
2024		30,132
Total		242,711
Discount factor		(19,851	)
Lease liability		222,860
Current lease liability		(117,131	)
Non-current lease liability	$	105,729

Purchase Commitments

As of March 31, 2022, the Company had entered into media and advertising commitments for VAZALORE of $2.9 million which are expected to be paid during the second quarter of 2022.

The Company has supply agreements with its contract manufacturer and packager for VAZALORE which contain minimum annual purchase commitments that started in 2021 and continue through 2025. The minimum annual purchase commitments are intended to ensure that manufactured product is available when required to enable the Company to meet its expected market demand for VAZALORE.