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Note 11 - Earn-out Milestone Liability
 6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Earn-out Milestone Liability Disclosure [Text Block]
Note
11.
Earn-out Milestone Liability
 
The total aggregate purchase price for the EGEN Acquisition included potential future Earn-out Payments contingent upon achievement of certain milestones. The difference between the aggregate
$30.4
million in future Earn-out Payments and the
$13.9
million included in the fair value of the acquisition consideration at
June 20, 2014
was based on the Company's risk-adjusted assessment of each milestone (
10%
to
67%
) and utilizing a discount rate based on the estimated time to achieve the milestone (
1.5
to
2.5
years). The earn-out milestone liability will be fair valued at the end of each quarter and any change in their value will be recognized in the condensed consolidated financial statements.
 
As of
June 30, 2017,
March 31, 2017
and
December 31, 2016,
the Company fair valued these milestones at
$13.8
million,
$13.5
million and
$13.2
million, respectively, and recognized a non-cash charge of
$292,228
and
$575,979
during the
three
and
six
months ended
June 30, 2017
as a result of the change in the fair value of these milestones from the beginning of each period respectively.
 
As of
June 30, 2016,
March 31, 2016
and
December 31, 2015,
the Company fair valued these milestones at
$13.8
million,
$14.2
million and
$13.9
million, respectively, and recognized a non-cash benefit of
$408,684
and
$106,028
during the
three
and
six
month periods ended
June 30, 2016,
respectively, as a result of the change in the fair value of these milestones from the beginning of each period respectively.
 
The following is a summary of the changes in the earn-out milestone liability for
2017:
 
Balance at January 1, 2017
   $
13,188,226
  
Non-cash charge from the adjustment for the change in fair value included in net loss
    
575,979
  
Balance at June 30, 2017
   $
13,764,205
  
 
 
The following is a schedule of the Company’s risk-adjustment assessment of each milestone:
 
 
Date
  
Risk-adjustment Assessment
of each Milestone
    
Discount
 Rate
    
Estimated Time
to Achieve
(years)
  
                                 
June 30, 2017
    
50%
to
80%
      
9%
      
1.50
to
2.00
  
March 31, 2017
    
50%
to
80%
      
9%
      
1.75
to
2.25
  
December 31, 2016
    
50%
to
80%
      
9%
      
2.00
to
2.50
  
                                 
June 30, 2016
    
10%
to
75%
      
9%
      
0.50
to
2.00
  
March 31, 2016
    
10%
to
75%
      
9%
      
0.25
to
2.25
  
December 31, 2015
    
10%
to
75%
      
9%
      
0.50
to
2.50