Note 10 - Collaboration, Licensing and Research Funding Agreements	3 Months Ended
Mar. 31, 2021
Notes to Financial Statements
Corporate Partnership, Licensing and Research Funding Agreements [Text Block]	Note 10 - Collaboration, Licensing and Research Funding Agreements In March 2020, we entered into the Term Sheet with Lee's (HK), pursuant to which Lee's (HK) provided financing for the development of AEROSURF. In August 2020, we entered into a Project Financing Agreement with Lee's (HK), the PF Agreement, formalizing the terms of the Term Sheet, and under which we have received payments totaling $2.8 million through October 2020. In November 2020, Lee's (HK) provided notice of termination of additional funding under the PF Agreement. Thereafter, we and Lee's (HK) revised our plans for the continued development of AEROSURF. Lee's (HK) agreed to continue the development of AEROSURF in Asia at its cost. Lee's (HK) has agreed to fund an additional $1.0 million to us in 2021 for certain transition and analytical services to be provided by us with respect to the development of AEROSURF, which will be considered “Project Expenses” under the terms of the PF Agreement. To repay the funds provided under the terms of the PF Agreement, until such time as we have repaid 125% of the amounts funded by Lee's (HK) for the development of AEROSURF, we will pay to Lee's (HK) 50% of all revenue amounts and payments received by us for any sale, divestiture, license or other development and/or commercialization of the KL4/AEROSURF patent portfolio, excluding (i) payments for bona fide research and development services; (ii) reimbursement of patent expenses and (iii) all amounts paid to us under the Asia License Agreement, minus certain deductions and certain reductions for any payments made by us with respect to third party intellectual property not previously funded by Lee's (HK). As of March 31, 2021 , the liability balance related to the payments under the PF Agreement was $2.8 million and is recorded in other liabilities.

Note

- Collaboration, Licensing and Research Funding Agreements

March 2020,

we entered into the Term Sheet with Lee's (HK), pursuant to which Lee's (HK) provided financing for the development of AEROSURF. In

August 2020,

we entered into a Project Financing Agreement with Lee's (HK), the PF Agreement, formalizing the terms of the Term Sheet, and under which we have received payments totaling

$2.8

million through

October 2020.

November 2020,

Lee's (HK) provided notice of termination of additional funding under the PF Agreement. Thereafter, we and Lee's (HK) revised our plans for the continued development of AEROSURF. Lee's (HK) agreed to continue the development of AEROSURF in Asia at its cost. Lee's (HK) has agreed to fund an additional

$1.0

million to us in

2021

for certain transition and analytical services to be provided by us with respect to the development of AEROSURF, which will be considered “Project Expenses” under the terms of the PF Agreement.

To repay the funds provided under the terms of the PF Agreement, until such time as we have repaid

125%

of the amounts funded by Lee's (HK) for the development of AEROSURF, we will pay to Lee's (HK)

50%

of all revenue amounts and payments received by us for any sale, divestiture, license or other development and/or commercialization of the

KL4/AEROSURF

patent portfolio, excluding (i) payments for bona fide research and development services; (ii) reimbursement of patent expenses and (iii) all amounts paid to us under the Asia License Agreement, minus certain deductions and certain reductions for any payments made by us with respect to

third

party intellectual property

not

previously funded by Lee's (HK).

As of

March 31, 2021

, the liability balance related to the payments under the PF Agreement was

$2.8

million and is recorded in other liabilities.