15. Subsequent Events

Increase in Shares Reserved Under the 2015 Equity Incentive Plan

At the Company’s annual meeting of stockholders, held on April 27, 2017 (the “Annual Meeting”), the Company’s stockholders approved an amendment to the 2015 Equity Incentive Plan to increase the number of shares of common stock reserved for issuance thereunder by 1,200,000 shares, to an aggregate of 5,755,277 shares.

Employee Stock Purchase Plan

At the Annual Meeting, the Company’s stockholders also approved the 2017 Employee Stock Purchase Plan (“2017 ESPP”), which authorized the issuance of up to 250,000 shares of common stock thereunder. Under the terms of the 2017 ESPP, eligible U.S. employees can elect to acquire shares of the Company’s common stock through periodic payroll deductions during a series of six-month offering periods, which will generally begin in March and September of each year. The purchases would be effected on the last business day of the offering period at a 15% discount to the closing price on that day. The 2017 ESPP was implemented, subject to stockholders approval, on March 10, 2017, and the first purchases thereunder will be on September 13, 2017.

Collaboration and License Agreement with GE Healthcare Limited

On April 25, 2017, the Company announced that it entered into a definitive, exclusive Collaboration and License Agreement (the “License Agreement”) with GE Healthcare Limited (“GE Healthcare”) for the continued Phase III development and worldwide commercialization of flurpiridaz F 18, an investigational positron emission tomography myocardial perfusion imaging agent that may improve the diagnosis of coronary artery disease.

Under the exclusive License Agreement, GE Healthcare will fund the second Phase III flurpiridaz F 18 clinical study, worldwide regulatory approvals and its worldwide launch and commercialization, with the Company collaborating in both development and commercialization through a joint steering committee. The Company will maintain the option to co-promote the agent in the U.S. GE Healthcare’s development plan will initially focus on obtaining regulatory approval in the U.S., Japan, Europe and Canada.

In April 2017, in connection with the License Agreement, GE Healthcare made a $5.0 million upfront cash payment to the Company. In addition, if flurpiridaz F 18 receives regulatory approvals and is commercially successful, the Company will receive:

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up to $60.0 million in regulatory and sales milestones payments;

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tiered double-digit royalties on U.S. sales;

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increased, tiered double-digit royalties on U.S. sales generated under the Company’s co-promote option; and,

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mid-single-digit royalties on sales outside of the U.S.