10. Accrued Expenses and Other Long-Term Liabilities

  

In December 2012, the Company acquired certain manufacturing rights from Ovamed GmbH (“Ovamed”) and agreed to pay an aggregate of $1.5 million, in three installments of $0.5 million on December 12, 2014, 2015 and 2016, respectively. As of March 31, 2015, the Company had not made any payments to Ovamed. On February 27, 2015, Ovamed, the Company’s supplier and manufacturer of TSO, filed for insolvency in Germany, a process similar to U.S. bankruptcy. The accrual is recorded on the Company’s Condensed Consolidated Balance Sheets as a current accrued expense of $1.5 million as of March 31, 2015, as a result of the bankruptcy notification. This obligation was recorded at its full value; accretion of the obligation was $166,000 and $37,000 for the three month period ended March 31, 2015 and 2014, respectively, and is recorded as interest expense. As of April 2015, the Company terminated all on-going TSO trials.

 

Accrued expenses and other long-term liabilities consisted of the following:

 

		As of March 31, 2015			As of December 31, 2014
Accrued expenses:
Salaries, bonuses and related benefits		$	376		$	598
Severance			5			38
Professional fees			238			837
Research and development expenses			710			832
Ovamed manufacturing rights – short-term component			1,500			1,000
Payable to COH (Note 5)			2,000			—
Short-term lease abandonment charge			165			165
Other			244			213
Total accrued expenses		$	5,238		$	3,683
Other long-term liabilities:
Ovamed manufacturing rights – long-term component			—			334
Long-term lease abandonment charge			207			268
Deferred rent			120			120
Total other long-term liabilities		$	327		$	722