Senomyx (SNMX) 10-K 3 Mar 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Feb. 24, 2016	Jun. 30, 2015
Entity Registrant Name	SENOMYX INC
Entity Central Index Key	1,123,979
Trading Symbol	snmx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		44,537,883
Entity Public Float			$ 161,486
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Amendment Flag	false

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 4,818,000	$ 3,961,000
Short-term investments available-for-sale	18,136,000	22,630,000
Concentration Risk, Accounts receivable	3,193,000	2,276,000
Inventories	2,434,000	2,319,000
Other current assets	660,000	993,000
Total current assets	$ 29,241,000	32,179,000
Long-term investments available-for-sale		2,147,000
Property and equipment, net	$ 3,334,000	3,835,000
Total assets	32,575,000	38,161,000
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	5,303,000	5,903,000
Deferred rent	559,000	354,000
Leasehold incentive obligation	219,000	987,000
Deferred revenues	3,511,000	5,135,000
Total current liabilities	9,592,000	12,379,000
Deferred rent	1,886,000	516,000
Leasehold incentive obligation	$ 1,573,000	1,152,000
Deferred revenues		$ 556,000
Commitments
Stockholders’ equity:
Preferred stock, $0.001 par value, 7,500,000 shares authorized; no shares issued or outstanding at December 31, 2015 and 2014	$ 0	$ 0
Common stock, $0.001 par value, 120,000,000 shares authorized; 44,503,820 and 43,370,309 shares issued and outstanding at December 31, 2015 and 2014, respectively	45,000	43,000
Additional paid-in-capital	286,991,000	278,362,000
Accumulated other comprehensive income (loss)	(27,000)	(10,000)
Accumulated deficit	(267,485,000)	(254,837,000)
Total stockholders’ equity	19,524,000	23,558,000
Total liabilities and stockholders’ equity	$ 32,575,000	$ 38,161,000

Balance Sheets (Parentheticals)

Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	7,500,000	7,500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	44,503,820	43,370,309
Common stock, shares outstanding (in shares)	44,503,820	43,370,309

Statements of Operations and Co

Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Development revenues	$ 17,838	$ 21,827	$ 24,657
Commercial revenues	7,044	5,835	4,630
Total revenues	24,882	27,662	29,287
Operating expenses:
Cost of commercial revenues	638	644	325
Research, development and patents	24,085	26,627	28,612
Selling, general and administrative	12,849	12,578	12,283
Total operating expenses	37,572	39,849	41,220
Loss from operations	(12,690)	(12,187)	(11,933)
Other income	42	37	35
Net loss	(12,648)	(12,150)	$ (11,898)
Other comprehensive income (loss):
Unrealized loss on investments	(17)	(17)
Comprehensive loss	$ (12,665)	$ (12,167)	$ (11,898)
Net loss per share, basic and diluted (in dollars per share)	$ (0.29)	$ (0.29)	$ (0.29)
Shares used in calculating net loss per share, basic and diluted (in shares)	43,968,167	42,611,904	40,662,640

Statements of Stockholders' Equ

Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2012	40,100,483
Balance at Dec. 31, 2012	$ 40	$ 256,470	$ 7	$ (230,789)	$ 25,728
Issuance of common stock related to the exercise of options (in shares)	715,440
Issuance of common stock related to the exercise of options	$ 1	1,366			1,367
Stock Issued During Period, Shares, Employee Stock Purchase Plans	279,994
Issuance of common stock related to employee stock plan purchases		452			452
Compensation related to stock options granted to employees and non-employee directors		4,005			4,005
Compensation related to stock options granted to consultants		$ 24			$ 24
Unrealized loss on investments
Net loss				$ (11,898)	$ (11,898)
Balance (in shares) at Dec. 31, 2013	41,095,917
Balance at Dec. 31, 2013	$ 41	$ 262,317	$ 7	$ (242,687)	19,678
Issuance of common stock related to the exercise of options (in shares)	1,802,295
Issuance of common stock related to the exercise of options	$ 2	8,564			8,566
Stock Issued During Period, Shares, Employee Stock Purchase Plans	472,097
Issuance of common stock related to employee stock plan purchases		1,300			1,300
Compensation related to stock options granted to employees and non-employee directors		6,142			6,142
Compensation related to stock options granted to consultants		$ 39			39
Unrealized loss on investments			$ (17)		(17)
Net loss				$ (12,150)	(12,150)
Balance (in shares) at Dec. 31, 2014	43,370,309
Balance at Dec. 31, 2014	$ 43	$ 278,362	$ (10)	$ (254,837)	$ 23,558
Issuance of common stock related to the exercise of options (in shares)	698,851				698,851
Issuance of common stock related to the exercise of options	$ 1	2,139			$ 2,140
Stock Issued During Period, Shares, Employee Stock Purchase Plans	434,660
Issuance of common stock related to employee stock plan purchases	$ 1	1,220			1,221
Compensation related to stock options granted to employees and non-employee directors		5,230			5,230
Compensation related to stock options granted to consultants		$ 40			40
Unrealized loss on investments			$ (17)		(17)
Net loss				$ (12,648)	(12,648)
Balance (in shares) at Dec. 31, 2015	44,503,820
Balance at Dec. 31, 2015	$ 45	$ 286,991	$ (27)	$ (267,485)	$ 19,524

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Activities
Net loss	$ (12,648)	$ (12,150)	$ (11,898)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,098	2,239	2,847
Accretion of premium on available-for-sale securities	148	220	258
Amortization of leasehold incentive obligation	(347)	(987)	(987)
Stock-based compensation for employees and non-employee directors	5,230	6,142	4,005
Stock-based compensation for non-employees	40	39	24
Change in operating assets and liabilities:
Accounts receivable	(917)	(150)	576
Inventories	(877)	(1,361)	(196)
Other current assets	387	(438)	235
Accounts payable, accrued expenses and other current liabilities	255	(2,071)	614
Deferred revenues	(2,180)	(4,862)	(5,027)
Deferred rent	1,575	(268)	(183)
Net cash used in operating activities	(8,236)	(13,647)	(9,732)
Investing activities
Purchases of property and equipment	(690)	(328)	(623)
Purchases of available-for-sale securities	(16,108)	(22,039)	(20,885)
Maturities of available-for-sale securities	22,530	18,815	25,295
Net cash provided by (used in) investing activities	5,732	(3,552)	3,787
Financing activities
Proceeds from issuance of common stock	3,361	9,959	1,719
Net cash provided by financing activities	3,361	9,959	1,719
Net change in cash and cash equivalents	857	(7,240)	(4,226)
Cash and cash equivalents at beginning of year	3,961	11,201	15,427
Cash and cash equivalents at end of year	$ 4,818	3,961	$ 11,201
Supplemental disclosure of cash flow information:
Purchases of inventories included in accounts payable, accrued expenses and other current liabilities at year-end		762
Purchases of property and equipment included in accounts payable, accrued expenses and other current liabilities at year-end		$ 93

Note 1 - Organization and Summa

Note 1 - Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	1. Organization and Summary of Significant Accounting Policies Organization and Business Senomyx, Inc. (“we”, “us” or “our”) was incorporated on September 16, 1998 in Delaware and commenced operations in January 1999. We use proprietary taste receptor technologies to discover, develop and commercialize innovative flavor ingredients for the packaged food, beverage and ingredient supply industries to improve the nutritional profile of their products and generate cost of goods savings while maintaining or improving taste. Our current programs focus on the development and commercialization of sweet, savory and salt flavor ingredients, bitter blockers and cooling agents. We currently have product discovery, development and commercialization collaborations with four of the world’s leading packaged food, beverage and ingredient companies: Ajinomoto Co., Inc. (“Ajinomoto”), Firmenich SA (“Firmenich”), Nestlé SA (“Nestlé”) and PepsiCo, Inc. (“PepsiCo”). Our collaboration agreements generally provide for license fees, research and development funding, reimbursement of certain costs, development milestone payments based upon our achievement of research or development goals and, in the event of commercialization, commercial milestone payments, minimum periodic royalties and royalties on sales of products incorporating our flavor ingredients. We also sell certain flavor ingredients directly to flavor companies for inclusion in a flavor system for re-sale to food and beverage companies. Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents We consider all highly liquid investments with a remaining maturity of three months or less when purchased to be cash equivalents. Cash equivalents are recorded at cost, which approximates market value. Investments Available-for-Sale Our surplus cash is invested in United States Treasuries, United States government agency bonds and corporate bonds with maturity dates of two years or less from the settlement date. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity with all amortization and accretion included in interest income. Our investments are classified as available-for-sale and carried at estimated fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are included in interest income. The cost of securities sold is based on the specific identification method. Interest on securities classified as available-for-sale is included in interest income. Fair Value of Financial Instruments other than Investments Available-for-Sale The carrying amount of cash and cash equivalents, accounts receivables, accounts payable and accrued expenses are considered to be representative of their respective fair value because of the short-term nature of those items. Concentration of Credit Risk and Major Collaborations Financial instruments, which potentially subject us to concentrations of credit risk, consist of cash, cash equivalents and investments available-for-sale. We limit our exposure to credit loss by placing our cash, cash equivalents, and investments with high credit quality financial institutions in instruments with short maturities. We derive significant portions of our revenues from a relatively small number of collaborators. For the years ended December 31, 2015, 2014 and 2013, revenues from any single collaborator that contributed 10% or more of revenues for the period were as follows: Years Ended December 31, 201 5 201 4 201 3 PepsiCo $14.9 million (60%) $14.5 million (53%) $16.2 million (55%) Firmenich $8.8 million (35%) $9.4 million (34%) $9.4 million (32%) Accounts Receivable We extend credit to our customers in the normal course of business based upon an evaluation of the customer’s credit history, financial condition and other factors. Estimates of allowances for uncollectible receivables are determined by evaluating individual customer circumstances, historical payment patterns, length of time past due and other factors. At December 31, 2015 and 2014, we did not have any allowances for uncollectible receivables. Accounts receivable from customers which contributed 10% or more of accounts receivable at December 31, 2015 and 2014 were as follows: December 31, 201 5 201 4 PepsiCo $2.0 million (61%) — Firmenich $1.2 million (37%) $1.2 million (55%) Nestlé — $0.6 million (26%) Inventories Inventories consist entirely of purchased finished goods. Inventories are valued at lower of cost (on a moving average basis) or market value. We are required to make assumptions regarding the level of reserves required to value items at the lower of cost or market. These assumptions require us to analyze forecasted demand, pricing trends, margins, product life cycles and qualitative factors given the limited sales history of our products, and to make judgments and estimates regarding excess or obsolete inventory. At December 31, 2015 and 2014, we did not have any reserves for lower of cost or market, excess or obsolete inventory. In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Simplifying the Measurement of Inventory” which requires an entity to measure inventory within the scope of this ASU at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this guidance more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (“IFRS”). This accounting guidance is effective for us beginning in the first quarter of 2018. We do not expect this updated standard to have a material impact on our financial statements and related disclosures. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and are depreciated over the estimated useful lives of the assets (ranging from three to five years) using the straight-line method. Leasehold improvements are amortized over the estimated useful life of the asset or the lease term, whichever is shorter. Impairment of Long-Lived Assets In accordance with the Property, Plant and Equipment Topic of the FASB Accounting Standards Codification (“ASC”) , if indicators of impairment exist, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If impairment is indicated, we measure the amount of such impairment by comparing the fair value to the carrying value. There have been no indicators of impairment through December 31, 2015. Deferred Rent Rent expense is recorded on a straight-line basis over the term of any lease. The difference between rent expense accrued and amounts paid under any lease agreement is recorded as deferred rent in the accompanying balance sheets. Leasehold Incentive Obligation In conjunction with the lease agreement covering the facility occupied by us, we received a tenant improvement allowance of $155 per square foot leased, or $10.1 million. As the tenant improvements were constructed, we recorded both the covered tenant improvements (as property and equipment) and an offsetting leasehold incentive obligation on our balance sheet. Through the term of the lease, we record depreciation expense to depreciate the tenant improvements and record an offsetting reduction to rent expense to amortize the leasehold incentive obligation. Revenue Recognition Development Revenues Development revenues are based on our product discovery, development and commercialization collaboration agreements. Some of our collaboration agreements contain multiple elements, including technological and territorial licenses and research and development services. In accordance with these agreements, we may be eligible for license fees, research and development funding, development milestone payments, cost reimbursements, royalty payments, minimum periodic royalty payments and commercial milestone payments. Development revenues include revenues from license fees, research and development funding, the achievement of development milestones and cost reimbursements. Pursuant to the Revenue Recognition – Multiple-Element Arrangements Topic of the FASB ASC, each required deliverable is evaluated to determine if it qualifies as a separate unit of accounting. For us, this determination is generally based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value; (ii) third-party evidence of selling price; and (iii) best estimate of selling price, or BESP. The BESP reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis. We expect, in general, to use the BESP for allocating consideration to each deliverable. In general, the consideration allocated to each unit of accounting is then recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. For multiple-element arrangements entered into prior to January 1, 2011 and not materially modified thereafter, we continue to apply our prior accounting policy with respect to such arrangements. Non-refundable license fees, if not associated with our future performance, are recognized when received. Non-refundable license fees, if associated with our future performance obligations, are attributed to a specific program or collaboration and recognized over the period of service for that specific program or collaboration. Amounts received for research funding are recognized as revenues as the services are performed. Revenue is deferred for fees received before earned. Revenues from development milestones are accounted for in accordance with the Revenue Recognition – Milestone Method Topic of the FASB ASC. Milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, provided that the milestone event is substantive. A milestone event is considered to be substantive if its achievability was not reasonably assured at the inception of the agreement and our efforts led to the achievement of the milestone or the milestone was due upon the occurrence of a specific outcome resulting from our performance. If both of these criteria are not met, the milestone payment is recognized over the remaining minimum period of our performance obligations under the agreement. We assess whether a milestone is substantive at the inception of each agreement. Revenues from cost reimbursement are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence. Commercial Revenues Commercial revenues from collaboration agreements include royalties on sales made by our collaborators of products incorporating our flavor ingredients, minimum periodic royalty payments and revenues from the achievement of commercial milestones. Commercial revenues also include direct sales of our flavor ingredients to flavor companies. Royalties on sales made by our collaborators of products incorporating our flavor ingredients are recognized when a royalty report or other persuasive evidence is received, which is generally one quarter in arrears. Non-refundable minimum periodic royalty payments are recognized as revenues over the related royalty periods. Royalty terms are specific to each collaboration and collaborator and can vary from year to year. These terms vary based on factors such as the characteristics of the flavor ingredient and the product categories and geographies licensed by the collaborator. Periodically, as contractually specified, our collaborators are required to provide a report detailing all sales of products containing our flavor ingredients. To the extent that calculated royalties on sales of such products exceed the minimum periodic royalty payments made to date, the collaborators are required to remit to us the difference between royalties calculated and minimum periodic royalty payments made to date. We recognize this difference as royalties on product sales at the time the report is received. To the extent that minimum periodic royalty payments through the end of any applicable period exceed calculated royalties, we are not required to refund the difference. Revenues from commercial milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, because we have no further performance obligations related to the commercial milestones. Revenues from direct sales of our flavor ingredients are recorded when there is persuasive evidence that an arrangement exists, title has passed, collection is reasonably assured and the price is fixed or determinable. We generally do not offer discounts, rebates or a general right of return on sales of flavor ingredients. New Accounting Guidance In May 2014, the FASB issued accounting guidance on the recognition of revenue from customers which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. Under this guidance, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects that the entity expects in exchange for the goods or services. This guidance also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is currently effective for fiscal years beginning after December 15, 2017, and interim periods within those years. The guidance allows entities to select one of two methods of adoption, either the full retrospective approach, meaning the guidance would be applied to all periods presented, or modified retrospective, meaning the cumulative effect of applying the guidance would be recognized as an adjustment to our opening retained earnings new balance at January 1, 2018, along with providing certain additional disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. Cost of Commercial Revenues Cost of commercial revenues represents royalties payable under our third-party licensing agreements and the cost of goods sold related to direct sales, including related shipping and handling costs. Research, Development and Patents Research and development costs, including those incurred in relation to our collaborative agreements, are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, facilities and depreciation, research and development supplies, licenses and outside services. Such research and development costs totaled $22.4 million, $24.9 million and $27.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Costs related to filing and pursuing patent applications are expensed as incurred, as recoverability of such expenditures is uncertain. We include all external costs related to the filing of patents related to development in Research, Development and Patents expenses. Such patent-related expenses totaled $1.7 million, $1.7 million and $1.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Employee Benefit Plans We have a defined contribution plan under Section 401(k) of the Internal Revenue Code covering employees who meet certain eligibility requirements. Eligible employees may defer their pre-tax compensation up to the maximum allowed by the Internal Revenue Service, or IRS. Under the plan, we may match a portion of employee contributions up to a defined maximum. Such matching contributions become vested and non-forfeitable according to a defined vesting schedule. We made matching contributions of $183,000, $199,000 and $187,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Stock-Based Compensation Compensation cost for stock-based awards is based on the estimated grant-date fair value. We use the Black-Scholes option-pricing model for determining the estimated fair value for stock-based awards with the following weighted average assumptions (annualized percentages): Years Ended December 31, 201 5 201 4 201 3 Stock Options Expected volatility 65.6 % 71.8 % 70.2 % Risk-free interest rate 1.73 % 1.82 % 1.54 % Dividend yield 0.0 % 0.0 % 0.0 % Expected term (in years) 6.1 6.2 6.1 Employee Stock Purchase Plan Expected volatility 68.4 % 68.9 % 62.8 % Risk-free interest rate 0.47 % 0.23 % 0.10 % Dividend yield 0.0 % 0.0 % 0.0 % Expected term 1.2 1.3 1.2 Expected volatility is based on our historical volatility. The risk-free interest rate for the expected term of the option is based on the average United States Treasury yield curve at the balance sheet date. The assumed dividend yield is based on our expectation of not paying dividends in the foreseeable future. The expected term of options granted is based on historical exercise data . The assumptions related to expected volatility and risk-free interest rate used for the valuation of stock options differ from those used for the valuation of employee stock purchase plan rights primarily due to the difference in their respective expected terms. The weighted-average estimated fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 were $2.79, $5.53 and $1.36 per share, respectively. The weighted-average estimated fair value of employee stock purchase plan rights granted during the years ended December 31, 2015, 2014 and 2013 were $2.88, $4.21 and $1.32 per share, respectively. Stock-based compensation expenses recognized in the Statements of Operations are based on awards ultimately expected to vest; accordingly, these expenses are reduced for estimated forfeitures. The Compensation-Stock Compensation Topic of the FASB ASC requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 3.8%, 4.0% and 6.1% for the years ended December 31, 2015, 2014 and 2013, respectively, based on historical experience. Stock-based compensation expenses for options and awards are recognized on a straight-line basis. S tock-based compensation expenses are allocated to research, development and patents or selling, general and administrative based upon the department to which the associated employee or non-employee reports. Total stock-based compensation expenses recognized for the years ended December 31, 2015, 2014 and 2013 was comprised as follows (in thousands): Years Ended December 31, 201 5 201 4 201 3 Research, development and patents $ 2,233 $ 2,575 $ 1,688 Selling, general and administrative 3,037 3,606 2,341 Total stock-based compensation expenses $ 5,270 $ 6,181 $ 4,029 The total fair value of options that vested during the years ended December 31, 2015, 2014 and 2013 was $5.8 million, $3.7 million and $3.9 million, respectively. At December 31, 2015, total unrecognized estimated compensation expenses related to non-vested stock options granted prior to that date were $7.1 million, expected to be recognized over a weighted average period of 1.6 years. Income Taxes We account for income taxes in accordance with provisions which set forth an asset and liability approach that requires the recognition of deferred tax assets and deferred tax liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not expected to be realized. In making such a determination, a review of all available positive and negative evidence is considered, including scheduled reversal of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. The provisions of the Income Taxes Topic of the FASB ASC defines a recognition threshold and measurement attributes for financial statement recognition and measurement of a tax provision taken or expected to be taken in a tax return. The Topic also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Under the Topic, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. We recognize interest and penalties related to uncertain tax positions as a component of the income tax provision. Net Loss Per Share Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income or loss by the weighted average number of common share equivalents outstanding for the period determined using the treasury-stock method. Dilutive common share equivalents include the dilutive effect of in-the-money shares, which is calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation cost, if any, for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital, if any, when the share is exercised are assumed to be used to repurchase shares in the current period. For purposes of this calculation, options to purchase common stock are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. The following table sets forth the computation of basic and diluted net loss per share for the respective periods. Years Ended December 31, 201 5 201 4 201 3 Numerator: Net loss (in thousands) $ (12,648 ) $ (12,150 ) $ (11,898 ) Denominator: Weighted average common shares 43,968,167 42,611,904 40,662,640 Basic and diluted net loss per share $ (0.29 ) $ (0.29 ) $ (0.29 ) Years Ended December 31, 201 5 201 4 201 3 O utstanding antidilutive securities not included in diluted net loss per share calculation: Options to purchase common stock 10,942,398 11,256,053 11,578,438 Comprehensive Income (Loss) The Comprehensive Income Topic of the FASB ASC requires that all components of comprehensive income (loss), including net income (loss), be reported in the financial statements in the period in which they are recognized. Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Our accumulated other comprehensive income (loss) as of December 31, 2015, 2014 and 2013 consisted of unrealized gains or losses on investments available-for-sale and is reported in stockholders’ equity. Segment Reporting We operate in one business segment, which is the development and commercialization of flavor ingredients. All of our operations are located in the United States. Due to the confidential nature of our collaborations, it is impracticable to report geographic information related to revenues. Recent Accounting Pronouncements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter; early adoption is permitted. We have not elected to early adopt and are currently evaluating the potential changes from this ASU to our future financial reporting and disclosures.

Note 2 - Balance Sheet Details

Note 2 - Balance Sheet Details	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	2. Balance Sheet Details Investments Available-for-Sale The following is a summary of investments available-for-sale securities at December 31, 2015 (in thousands): Amortized Cost Unrealized Gain Unrealized Loss Estimated United States government agency bonds $ 7,717 $ — $ (8 ) $ 7,709 Corporate bonds 10,447 — (20 ) 10,427 $ 18,164 $ — $ (28 ) $ 18,136 The following is a summary of investments available-for-sale securities at December 31, 2014 (in thousands): Amortized Cost Unrealized Gain Unrealized Loss Estimated United States Treasuries $ 1,500 $ — $ — $ 1,500 United States government agency bonds 16,341 — (6 ) 16,335 Corporate bonds 6,946 — (4 ) 6,942 $ 24,787 $ — $ (10 ) $ 24,777 Investments we consider to be temporarily impaired at December 31, 2015 were as follows (in thousands, except for number of investments): Less than 12 Months Description Number of investments Estimated Fair Value Unrealized Losses United States government agency bonds 5 $ 5,558 $ (8 ) Corporate bonds 13 9,177 (20 ) Total temporarily impaired securities 18 $ 14,735 $ (28 ) We believe that the decline in value of these securities is temporary and primarily related to the change in market interest rates since purchase and that it is more likely than not that we will be able to hold these securities to maturity. Therefore we anticipate full recovery of their amortized cost basis at maturity. Gross realized gains and losses on available-for-sale securities were immaterial during the years ended December 30, 2015 and 2014. As of December 31, 2015, we held $18.1 million of available-for-sale securities with maturity dates within one year. Property and Equipment Property and equipment consists of the following (in thousands): As of December 31, 201 5 201 4 Scientific equipment $ 12,547 $ 12,546 Computer equipment 3,224 3,423 Furniture and fixtures 1,077 1,099 Leasehold improvements 13,228 13,211 30,076 30,279 Less accumulated depreciation and amortization (26,742 ) (26,444 ) $ 3,334 $ 3,835 Depreciation expense was $1.1 million, $2.2 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. Accounts Payable , Accrued Expenses and Other Current Liabilities Accounts payable and accrued expenses consist of the following (in thousands): As of December 31, 201 5 201 4 Accounts payable $ 352 $ 1,064 Accrued employee benefits 4,105 3,192 Other accrued expenses 846 1,647 $ 5,303 $ 5,903

Note 3 - Fair Value Disclosures

Note 3 - Fair Value Disclosures	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	3 . Fair Value Disclosures The following table presents information about our financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2015 and indicates the fair value hierarchy of the valuation techniques we use to determine such fair value. In general, fair values determined by Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. We classify money market funds and United States Treasuries as Level 1 assets. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. We obtain the fair value of Level 2 financial instruments from a third-party professional pricing service using quoted market prices for identical or comparable instruments. The professional pricing service gathers market prices from a variety of industry standard data providers, security master files from large financial institutions and other third-party sources. The service uses these multiple prices as inputs into a distribution-curve based algorithm to determine a fair value. We then validate the quoted fair values provided by the professional pricing service by comparing the service’s assessment of the fair values of our Level 2 investment portfolio balance against the fair values of our Level 2 investment portfolio balance provided by our investment managers. We classify United States government agency bonds and corporate bonds as Level 2 assets. There were no transfers between Level 1 and Level 2 during 2015 or 2014. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and we consider factors specific to the asset or liability. We do not hold any Level 3 assets or liabilities. The fair value as of December 31, 2015 and 2014 for assets that have recurring measurements are shown below (in thousands): Fair Value Measurement at Reporting Date Using Description Balance as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial instruments owned: Money market funds $ 3,043 $ 3,043 $ — $ — U.S. government agency bonds 9,208 — 9,208 — Corporate bonds 10,427 — 10,427 — Total financial instruments owned $ 22,678 $ 3,043 $ 19,635 $ — Fair Value Measurement at Reporting Date Using Description Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial instruments owned: Money market funds $ 3,088 $ 3,088 $ — $ — U.S. Treasuries 1,500 1,500 — — U.S. government agency bonds 16,335 — 16,335 — Corporate bonds 6,942 — 6,942 — Total financial instruments owned $ 27,865 $ 4,588 $ 23,277 $ —

Note 4 - Product Discovery, Dev

Note 4 - Product Discovery, Development and Commercialization Collaborations	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Collaborative Arrangement Disclosure [Text Block]	4. Product Discovery , Development and Commercialization Collaborations Our current collaboration agreements generally provide for research and development funding, milestone payments, cost reimbursement and royalty payments in the event the collaborator commercializes a product incorporating our flavor ingredients. For our agreements that include development milestones and commercial milestones, development milestones generally range from $500,000 to $1.0 million each. Development milestones are generally due upon selection and regulatory events. Development milestones are considered to be due to our performance and are accounted for as substantive milestones in accordance with the Revenue Recognition – Milestone Method Topic of the FASB ASC. Development milestones are recorded as development revenues. An example of a selection event would be a collaborator selecting a compound for development. Our efforts that support the compound selection process include the identification of relevant taste receptors and the development of proprietary taste receptor-based assays based in the identified receptor, the screening and identification of compounds that bind to the identified receptor and optimization of compounds for selection. An example of a regulatory event would be a selected compound obtaining either U.S. or foreign regulatory approval. There are circumstances under which we and our collaborators in the future may mutually agree to pursue additional program goals, in which case we could then be eligible to earn additional development milestones. Any such additional milestones remain uncertain at this time. We do not consider any individual development milestone to be material due to the relatively small size of any individual development milestone payment in relation to our annual revenues, and due to the uncertainty associated with the scientific progress required for us to earn such milestones. Commercial milestones generally range from $500,000 to $1.5 million each and are due upon commercial events. We do not consider commercial events to be due to our performance, and as such, are not accounted for as substantive milestones in accordance with the Revenue Recognition – Milestone Method Topic of the FASB ASC. Examples of commercial events would be the first commercial sale of a product containing a developed compound or upon sales of a product containing a developed compound reaching a certain level. There are circumstances under which we and our collaborators in the future may mutually agree to pursue additional program goals, in which case we could then be eligible to earn additional commercial milestones. Any such additional milestones remain uncertain at this time. We consider milestones for commercial events to be commercial revenues. The specific type of royalty and method for calculating royalty payments varies by agreement. We have retail-based royalty agreements, where any potential royalty payable to us is calculated as a percentage of the net sales price of a manufacturer’s finished products or is based on the volume of a manufacturer’s finished product that it sells. Our retail-based royalty agreements provide for an effective royalty rate of up to 4%. Our agreements with Ajinomoto and PepsiCo are either exclusively or partially retail-based royalty agreements. We have ingredient supply agreements, where any potential royalty payable to us is calculated as a percentage of the sales price of either our ingredient itself or the flavor system in which our ingredient is contained or is based on the volume of the ingredient itself used by a manufacturer in a finished product. Our ingredient supply royalty agreements specify royalty rates that are typically greater than the rates specified by our retail-based agreements. Our agreements with Firmenich, Nestlé and PepsiCo are either exclusively or partially ingredient supply-based royalty agreements. Certain of our current collaboration agreements also provide for upfront license fees and minimum periodic royalties. Below is a discussion of our material agreements. Material Agreements Firmenich . In October 2010 we and Firmenich further amended the agreement to include, among other things, commercial development of S6973, our novel sucrose modifier, for specific beverage applications. The amendment also converts Firmenich’s license for use of S6973 in powdered beverages from co-exclusive to exclusive and grants Firmenich an exclusive right to commercialize any compound that they select for development for use in confectionary food products. In return, under the terms of the amendment we received an additional license fee, and incremental milestone payments and minimum annual royalties. In November 2010, Firmenich exercised its option to expand the companies’ agreement to include the discovery, development, and worldwide commercialization of natural flavor ingredients that modify the taste of sucrose, fructose, and various forms of rebaudioside. In consideration of the expansion of the agreement, Firmenich paid us additional research funding as well as milestones, minimum annual royalties, and royalties on sales of natural sweet enhancers developed under the collaboration. In April 2013, we amended and restated the collaboration agreement with Firmenich to extend the collaborative research period through July 2016, subject to limited termination rights. Firmenich will pay an additional non-refundable license fee of $5 million, of which $4 million was paid in 2013. The remaining $1 million will be paid at the earlier of the achievement of a certain milestone or the end of the research period. Firmenich will also pay approximately $13 million in research funding over the three-year extension period from July 2013 through July 2016, payable on a quarterly basis. Firmenich continues to have obligations for other milestone payments, cost reimbursements and royalty payments under an increased royalty rate structure based upon Firmenich sales of flavor ingredients developed under the collaboration. In connection with this collaborative agreement, we recognized development revenues of $6.2 million, $6.5 million and $6.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. Development revenues for the years ended 2015, 2014 and 2013 included zero, $500,000 and $667,000 related to the earning of zero, one and one development milestones, respectively. We also recognized commercial revenues of $2.0 million, $1.7 million and $1.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015 and 2014, we had deferred revenues of $375,000 and $1.7 million, respectively. Under this agreement, through December 31, 2015, we have received $50.4 million in license fees, research and development funding and cost reimbursements and $3.4 million in development milestone payments. Including the remaining license fees and research and development funding, we are entitled to an additional $3.3 million for a total of $57.1 million. There is no guarantee that we will receive any further milestone payments under this collaboration. PepsiCo . $32.0 million in research and development payments over the initial four-year research period. We are also entitled to milestone payments and reimbursement of certain out-of-pocket expenses. Upon commercialization, we are entitled to minimum annual royalties during specified periods of time and/or royalty payments on products that incorporate selected flavor ingredients and/or natural high intensity sweeteners. In May 2014, PepsiCo exercised its option to extend the research period for an additional two years through August 2016, which entitled us to $17.6 million in committed research funding to be paid in quarterly installments over the additional two-year period. In connection with this agreement, we recognized development revenues of $10.0 million, $13.0 million and $16.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Included in development revenues was zero, $750,000 and zero related to the earnings of zero, one and zero development milestones for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015 and 2014, we had deferred revenues of $3.1 million and $4.0 million, respectively. Under this agreement, through December 31, 2015, we have received $78.8 million in upfront fees, research and development funding and cost reimbursements and $3.0 million in development milestone payments. Including the remaining research and development funding, we are entitled to an additional $3.3 million for a total of $85.1 million. There is no guarantee that we will receive any further milestone payments under this collaboration. This footnote only discloses amounts recognized for individually material collaboration agreements during the years ended December 31, 2015, 2014 and 2013, and does not represent the entire amount of development and commercial revenues recognized during those periods.

Note 5 - Commitments

Note 5 - Commitments	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	5 . Commitments Leases and Loans In February 2015, we amended the lease agreement for our laboratory and office facility in San Diego, California. The amended lease expires on February 28, 2024, a seven-year extension of the previous lease period. The amended lease provides for certain rent-free periods beginning in 2015 and an annual 1% rent increase during the extended lease period. Rent expense for the years ended December 31, 2015, 2014 and 2013 was $2.2 million, $1.7 million and $1.7 million, respectively. We have also entered into various operating lease agreements for office equipment. For all of our operating leases in effect at December 31, 2015, the estimated annual future minimum rental payments for the years ending December 31 are as follows (in thousands): Operating Leases 2016 $ 3,139 2017 1,879 2018 2,870 2019 2,898 2020 2,927 Thereafter 9,500 Total minimum lease payments $ 23,213 In connection with certain license agreements, our annual future minimum obligation payments are $204,000, $161,000 and $163,000 for the years ending December 31, 2016, 2017 and 2018, respectively.

Note 6 - Stockholders' Equity

Note 6 - Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Shareholders' Equity and Share-based Payments [Text Block]	6 . Stockholders ’ Equity Convertible Preferred Stock Our certificate of incorporation, as amended and restated, authorizes us to issue up to 7,500,000 shares of preferred stock, with a par value of $0.001, in one or more series. Our Board of Directors may authorize the issuance of convertible preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. The issuance of convertible preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of the company and may adversely affect the market price of the common stock and the voting and other rights of the holders of common stock. No shares of convertible preferred stock were outstanding as of December 31, 2015 or 2014. Equity Incentive Plan We adopted the 2004 Equity Incentive Plan in connection with our initial public offering and adopted the 2013 Equity Incentive Plan effective for grants beginning January 1, 2014 (collectively, the “Plan”). The Plan provides for the grant of incentive and non-statutory stock options and restricted stock purchase rights to our employees, directors and consultants. The Plan, as amended, authorizes us to issue up to 18,935,450 shares of common stock. At December 31, 2015, 2,238,918 shares remain available for grant under the Plan. We issue new shares of common stock upon the exercise of stock options. The Plan allows us to grant restricted stock purchase rights at no less than 85% of the fair value of our common stock as determined by our Board of Directors at the date of the grant. All restricted stock purchase rights vest in accordance with a vesting schedule determined by our Board of Directors, typically over a four-year period. Since the Plan’s inception, 457,069 restricted stock purchase rights have been granted at exercise prices ranging from $0.35 to $0.94 per share, all of which have been exercised as of December 31, 2015. We have repurchased a total of 131,152 shares since the Plan’s inception and no shares are subject to repurchase at December 31, 2015. No restricted stock purchase rights were granted during the three years ended December 31, 2015. Options granted under the Plan generally expire no later than 10 years from the date of grant (five years for a 10% stockholder). Options generally vest and become fully exercisable over a period of four years. In certain cases, grants to officers, directors and consultants can be made fully exercisable at the date of grant. The exercise price of incentive stock options must be equal to at least the fair value of our common stock on the date of grant, and the exercise price of non-statutory stock options may be no less than 85% of the fair value of our common stock on the date of grant. The exercise price of any option granted to a 10% stockholder may be no less than 110% of the fair value of our common stock on the date of grant. We have an option to repurchase all unvested shares at the original purchase price for any reason upon the voluntary or involuntary termination of employment with us or consulting services provided to us. At December 31, 2015, no shares of common stock were unvested and subject to repurchase. The following is a summary of stock option activity under the Plan through December 31, 2015: Shares Weighted Average Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 11,256,053 $ 6.40 Granted 1,265,210 $ 4.62 Exercised (698,851 ) $ 3.07 Cancelled (880,014 ) $ 8.90 Outstanding at December 31, 2015 10,942,398 $ 6.20 5.2 $ 4,461 Vested or expected to vest at December 31, 2015 10,842,660 $ 6.21 5.2 $ 4,442 Exercisable at December 31, 2015 8,514,796 $ 6.46 4.3 $ 3,682 The aggregate intrinsic value represents the difference between the closing market price of our common stock at December 31, 2015 of $3.77 and the exercise price of in-the-money options. The total intrinsic value of options exercised was $1.8 million, $8.1 million and $844,000 during the years ended December 31, 2015, 2014 and 2013, respectively. We received $2.1 million, $8.6 million and $1.4 million in proceeds from the exercise of stock options during the years ended December 31, 2015, 2014 and 2013, respectively. E mployee Stock Purchase Plan During 2004, we adopted the 2004 Employee Stock Purchase Plan (the “Purchase Plan”), which allows all eligible employees to purchase shares of our common stock at the lower of: (i) 85% of the fair market value on the first day of a two-year offering period; or (ii) 85% of the fair market value on the last date of each six-month purchase period within the two-year offering period. Employees may authorize us to withhold up to 15% of their compensation during any purchase period, subject to certain limitations. The Purchase Plan authorizes up to 5,633,096 shares to be granted. At December 31, 2015, 3,539,814 shares of common stock have been issued under the Purchase Plan at an average price of $2.65 per share. Shares Reserved for Future Issuance The following shares of common stock are reserved for future issuance: December 31, 201 5 Common stock options granted and outstanding 10,942,398 Common stock options reserved for future grant 2,238,918 Common stock reserved under Purchase Plan 2,093,282 Total common stock shares reserved for future issuance 15,274,598

Note 7 - Income Taxes

Note 7 - Income Taxes	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	7. Income Taxes Significant components of our net deferred tax assets at December 31, 2015 and 2014 are shown below (in thousands). A valuation allowance of $88.0 million and $92.0 million has been established to offset the net deferred tax assets as of December 31, 2015 and 2014, respectively, due to uncertainties surrounding our ability to generate future taxable income to realize these assets. Years ended 2015 20 14 Deferred tax assets: Net operating loss carryforwards $ 38,200 $ 39,900 Capitalized research and development 25,900 27,200 Research and development credits 11,200 10,700 Stock compensation 8,500 9,600 Deferred revenues 1,300 2,300 Other, net 2,900 2,300 Total deferred tax assets 88,000 92,000 Total deferred tax liabilities — — Net deferred tax assets 88,000 92,000 Valuation allowance for deferred tax assets (88,000 ) (92,000 ) Net deferred tax assets $ — $ — The provision for income taxes on earnings subject to income taxes differs from the statutory federal rate at December 31, 2015, 2014 and 2013, due to the following (in thousands): 201 5 201 4 201 3 Federal income taxes at 35% $ (4,426 ) $ (4,252 ) $ (4,164 ) State income tax, net of Federal benefit 1 (622 ) (581 ) Tax effect on non-deductible expenses and credits 968 138 612 Expiring state net operating losses 143 218 — Research credits (635 ) (1,223 ) (823 ) Uncertain tax positions 2,038 306 206 Rate change 6,066 491 — Other (10 ) 75 (350 ) Change in valuation allowance (4,145 ) 4,869 5,100 $ — $ — $ — We recognize windfall tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. Accordingly, deferred tax assets are not recognized for net operating loss carryforwards resulting from windfall tax benefits occurring from January 1, 2006 onward. At December 31, 2015 deferred tax assets do not include excess tax benefits from stock-based compensation of approximately $3.7 million. At December 31, 2015, we had Federal and California tax net operating loss carryforwards of approximately $110.2 million and $91.6 million, respectively. The Federal and California tax loss carryforwards will begin to expire in 2019 and 2016, respectively, unless previously utilized. At December 31, 2015, we also had Federal and California research and development tax credit carryforwards of approximately $9.7 million and $8.1 million, respectively. The Federal credit carryforward will begin to expire in 2019 unless previously utilized and the California credit will carry forward indefinitely until utilized. We have analyzed filing positions in all of the Federal and state jurisdictions where we are required to file income tax returns for all open tax years in these jurisdictions. Our analysis concluded that, due to past ownership changes, our deferred tax assets for net operating losses and research and development credits will be subject to an annual limitation. As such, $3.1 million of net operating losses will expire and $944,000 of research and development credits will expire for Federal purposes as a result of the multiple ownership changes which occurred in prior years. As a result of the completion of the analysis, we have included the net operating loss and research and development credit carryforward net of the amount to be expired as a deferred tax asset. However, we have determined that sufficient future taxable income may not be available to realize the deferred tax assets for net operating loss and research and development credit carryforwards. Therefore, we have recognized a full valuation allowance for these deferred tax assets. We updated our Section 382 and 383 analyses through December 31, 2015 and determined that there has not been a subsequent ownership change since February 2007. The completion of our Section 382 and 383 analyses through December 31, 2015 does not prevent further limitations to our net operating loss and research and development credit carryforwards. Additional limitations may arise if we experience an ownership change in subsequent periods. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” an update to the Income Taxes Topic of the FASB ASC (“Update”). Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The FASB also decided to permit earlier application by all entities as of the beginning of any interim or annual reporting period. The FASB further provides that this Update may be applied to all deferred tax liabilities and assets prospectively. We chose to adopt the update prospectively beginning in the year ended December 31, 2015. A rollforward of changes in our unrecognized tax benefits is shown below (in thousands). 2015 2014 2013 Balance at beginning of year $ 4,360 $ 3,989 $ 3,629 Additions based on tax positions related to the current year 195 371 242 Additions based on tax positions of prior years 2,994 — 118 Reductions based on tax positions of prior years (102 ) Balance at end of year $ 7,447 $ 4,360 $ 3,989 In the next twelve months, we do not expect a significant change in our unrecognized tax benefits. Due to the existence of the valuation allowance, future changes in unrecognized tax benefits will not impact our effective tax rate. We are subject to taxation in the United States and state jurisdictions. Our tax years for 2012 and forward are subject to examination by the IRS and tax years 2011 and forward are subject to examination by California tax authorities. Due to the carryforward of unutilized net operating losses and research and development credits, the IRS and the California tax authorities may go back to the taxable years in which the net operating losses and research and development credits became available to recompute such amounts, but not redetermine the tax liability for such years. We are currently not under examination by any taxing authorities. We recognize interest and penalties related to income tax matters in income tax expense. For the three years ended December 31, 2015, we did not recognize any interest or penalties.

Note 8 - Summary of Quarterly F

Note 8 - Summary of Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Quarterly Financial Information [Text Block]	8 . Summary of Quarterly Financial Data (unaudited) The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2015 and 2014 (in thousands, except per share amounts): Year Ended December 31, 201 5 First Quarter Second Quarter Third Quarter Fourth Quarter Selected Quarterly Financial Data: Revenues $ 5,006 $ 6,213 $ 7,393 $ 6,270 Total operating expenses 9,583 8,950 9,807 9,232 Net loss (4,569 ) (2,728 ) (2,405 ) (2,946 ) Basic and diluted net loss per common share $ (0.11 ) $ (0.06 ) $ (0.05 ) $ (0.07 ) Year Ended December 31, 201 4 First Quarter Second Quarter Third Quarter Fourth Quarter Selected Quarterly Financial Data: Revenues $ 8,204 $ 7,343 $ 5,858 $ 6,257 Total operating expenses 10,220 9,992 10,275 9,362 Net loss (2,008 ) (2,641 ) (4,406 ) (3,095 ) Basic and diluted net loss per common share $ (0.05 ) $ (0.06 ) $ (0.10 ) $ (0.07 )

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents We consider all highly liquid investments with a remaining maturity of three months or less when purchased to be cash equivalents. Cash equivalents are recorded at cost, which approximates market value.
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block]	Investments Available-for-Sale Our surplus cash is invested in United States Treasuries, United States government agency bonds and corporate bonds with maturity dates of two years or less from the settlement date. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity with all amortization and accretion included in interest income. Our investments are classified as available-for-sale and carried at estimated fair value, with unrealized gains and losses reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are included in interest income. The cost of securities sold is based on the specific identification method. Interest on securities classified as available-for-sale is included in interest income.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments other than Investments Available-for-Sale The carrying amount of cash and cash equivalents, accounts receivables, accounts payable and accrued expenses are considered to be representative of their respective fair value because of the short-term nature of those items.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk and Major Collaborations Financial instruments, which potentially subject us to concentrations of credit risk, consist of cash, cash equivalents and investments available-for-sale. We limit our exposure to credit loss by placing our cash, cash equivalents, and investments with high credit quality financial institutions in instruments with short maturities. We derive significant portions of our revenues from a relatively small number of collaborators. For the years ended December 31, 2015, 2014 and 2013, revenues from any single collaborator that contributed 10% or more of revenues for the period were as follows: Years Ended December 31, 201 5 201 4 201 3 PepsiCo $14.9 million (60%) $14.5 million (53%) $16.2 million (55%) Firmenich $8.8 million (35%) $9.4 million (34%) $9.4 million (32%)
Trade and Other Accounts Receivable, Policy [Policy Text Block]	Accounts Receivable We extend credit to our customers in the normal course of business based upon an evaluation of the customer’s credit history, financial condition and other factors. Estimates of allowances for uncollectible receivables are determined by evaluating individual customer circumstances, historical payment patterns, length of time past due and other factors. At December 31, 2015 and 2014, we did not have any allowances for uncollectible receivables. Accounts receivable from customers which contributed 10% or more of accounts receivable at December 31, 2015 and 2014 were as follows: December 31, 201 5 201 4 PepsiCo $2.0 million (61%) — Firmenich $1.2 million (37%) $1.2 million (55%) Nestlé — $0.6 million (26%)
Inventory, Policy [Policy Text Block]	Inventories Inventories consist entirely of purchased finished goods. Inventories are valued at lower of cost (on a moving average basis) or market value. We are required to make assumptions regarding the level of reserves required to value items at the lower of cost or market. These assumptions require us to analyze forecasted demand, pricing trends, margins, product life cycles and qualitative factors given the limited sales history of our products, and to make judgments and estimates regarding excess or obsolete inventory. At December 31, 2015 and 2014, we did not have any reserves for lower of cost or market, excess or obsolete inventory. In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Simplifying the Measurement of Inventory” which requires an entity to measure inventory within the scope of this ASU at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this guidance more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (“IFRS”). This accounting guidance is effective for us beginning in the first quarter of 2018. We do not expect this updated standard to have a material impact on our financial statements and related disclosures.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment are stated at cost less accumulated depreciation and are depreciated over the estimated useful lives of the assets (ranging from three to five years) using the straight-line method. Leasehold improvements are amortized over the estimated useful life of the asset or the lease term, whichever is shorter.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-Lived Assets In accordance with the Property, Plant and Equipment Topic of the FASB Accounting Standards Codification (“ASC”) , if indicators of impairment exist, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If impairment is indicated, we measure the amount of such impairment by comparing the fair value to the carrying value. There have been no indicators of impairment through December 31, 2015.
Deferred Charges, Policy [Policy Text Block]	Deferred Rent Rent expense is recorded on a straight-line basis over the term of any lease. The difference between rent expense accrued and amounts paid under any lease agreement is recorded as deferred rent in the accompanying balance sheets.
Lease, Policy [Policy Text Block]	Leasehold Incentive Obligation In conjunction with the lease agreement covering the facility occupied by us, we received a tenant improvement allowance of $155 per square foot leased, or $10.1 million. As the tenant improvements were constructed, we recorded both the covered tenant improvements (as property and equipment) and an offsetting leasehold incentive obligation on our balance sheet. Through the term of the lease, we record depreciation expense to depreciate the tenant improvements and record an offsetting reduction to rent expense to amortize the leasehold incentive obligation.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Development Revenues Development revenues are based on our product discovery, development and commercialization collaboration agreements. Some of our collaboration agreements contain multiple elements, including technological and territorial licenses and research and development services. In accordance with these agreements, we may be eligible for license fees, research and development funding, development milestone payments, cost reimbursements, royalty payments, minimum periodic royalty payments and commercial milestone payments. Development revenues include revenues from license fees, research and development funding, the achievement of development milestones and cost reimbursements. Pursuant to the Revenue Recognition – Multiple-Element Arrangements Topic of the FASB ASC, each required deliverable is evaluated to determine if it qualifies as a separate unit of accounting. For us, this determination is generally based on whether the deliverable has “stand-alone value” to the customer. The arrangement’s consideration is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value; (ii) third-party evidence of selling price; and (iii) best estimate of selling price, or BESP. The BESP reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis. We expect, in general, to use the BESP for allocating consideration to each deliverable. In general, the consideration allocated to each unit of accounting is then recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. For multiple-element arrangements entered into prior to January 1, 2011 and not materially modified thereafter, we continue to apply our prior accounting policy with respect to such arrangements. Non-refundable license fees, if not associated with our future performance, are recognized when received. Non-refundable license fees, if associated with our future performance obligations, are attributed to a specific program or collaboration and recognized over the period of service for that specific program or collaboration. Amounts received for research funding are recognized as revenues as the services are performed. Revenue is deferred for fees received before earned. Revenues from development milestones are accounted for in accordance with the Revenue Recognition – Milestone Method Topic of the FASB ASC. Milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, provided that the milestone event is substantive. A milestone event is considered to be substantive if its achievability was not reasonably assured at the inception of the agreement and our efforts led to the achievement of the milestone or the milestone was due upon the occurrence of a specific outcome resulting from our performance. If both of these criteria are not met, the milestone payment is recognized over the remaining minimum period of our performance obligations under the agreement. We assess whether a milestone is substantive at the inception of each agreement. Revenues from cost reimbursement are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence. Commercial Revenues Commercial revenues from collaboration agreements include royalties on sales made by our collaborators of products incorporating our flavor ingredients, minimum periodic royalty payments and revenues from the achievement of commercial milestones. Commercial revenues also include direct sales of our flavor ingredients to flavor companies. Royalties on sales made by our collaborators of products incorporating our flavor ingredients are recognized when a royalty report or other persuasive evidence is received, which is generally one quarter in arrears. Non-refundable minimum periodic royalty payments are recognized as revenues over the related royalty periods. Royalty terms are specific to each collaboration and collaborator and can vary from year to year. These terms vary based on factors such as the characteristics of the flavor ingredient and the product categories and geographies licensed by the collaborator. Periodically, as contractually specified, our collaborators are required to provide a report detailing all sales of products containing our flavor ingredients. To the extent that calculated royalties on sales of such products exceed the minimum periodic royalty payments made to date, the collaborators are required to remit to us the difference between royalties calculated and minimum periodic royalty payments made to date. We recognize this difference as royalties on product sales at the time the report is received. To the extent that minimum periodic royalty payments through the end of any applicable period exceed calculated royalties, we are not required to refund the difference. Revenues from commercial milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, because we have no further performance obligations related to the commercial milestones. Revenues from direct sales of our flavor ingredients are recorded when there is persuasive evidence that an arrangement exists, title has passed, collection is reasonably assured and the price is fixed or determinable. We generally do not offer discounts, rebates or a general right of return on sales of flavor ingredients. New Accounting Guidance In May 2014, the FASB issued accounting guidance on the recognition of revenue from customers which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. Under this guidance, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects that the entity expects in exchange for the goods or services. This guidance also requires more detailed disclosures to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is currently effective for fiscal years beginning after December 15, 2017, and interim periods within those years. The guidance allows entities to select one of two methods of adoption, either the full retrospective approach, meaning the guidance would be applied to all periods presented, or modified retrospective, meaning the cumulative effect of applying the guidance would be recognized as an adjustment to our opening retained earnings new balance at January 1, 2018, along with providing certain additional disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.
Cost of Sales, Policy [Policy Text Block]	Cost of Commercial Revenues Cost of commercial revenues represents royalties payable under our third-party licensing agreements and the cost of goods sold related to direct sales, including related shipping and handling costs.
Research Development and Patents Expense, Policy [Policy Text Block]	Research, Development and Patents Research and development costs, including those incurred in relation to our collaborative agreements, are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, facilities and depreciation, research and development supplies, licenses and outside services. Such research and development costs totaled $22.4 million, $24.9 million and $27.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Costs related to filing and pursuing patent applications are expensed as incurred, as recoverability of such expenditures is uncertain. We include all external costs related to the filing of patents related to development in Research, Development and Patents expenses. Such patent-related expenses totaled $1.7 million, $1.7 million and $1.5 million for the years ended December 31, 2015, 2014 and 2013, respectively.
Pension and Other Postretirement Plans, Policy [Policy Text Block]	Employee Benefit Plans We have a defined contribution plan under Section 401(k) of the Internal Revenue Code covering employees who meet certain eligibility requirements. Eligible employees may defer their pre-tax compensation up to the maximum allowed by the Internal Revenue Service, or IRS. Under the plan, we may match a portion of employee contributions up to a defined maximum. Such matching contributions become vested and non-forfeitable according to a defined vesting schedule. We made matching contributions of $183,000, $199,000 and $187,000 for the years ended December 31, 2015, 2014 and 2013, respectively.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-Based Compensation Compensation cost for stock-based awards is based on the estimated grant-date fair value. We use the Black-Scholes option-pricing model for determining the estimated fair value for stock-based awards with the following weighted average assumptions (annualized percentages): Years Ended December 31, 201 5 201 4 201 3 Stock Options Expected volatility 65.6 % 71.8 % 70.2 % Risk-free interest rate 1.73 % 1.82 % 1.54 % Dividend yield 0.0 % 0.0 % 0.0 % Expected term (in years) 6.1 6.2 6.1 Employee Stock Purchase Plan Expected volatility 68.4 % 68.9 % 62.8 % Risk-free interest rate 0.47 % 0.23 % 0.10 % Dividend yield 0.0 % 0.0 % 0.0 % Expected term 1.2 1.3 1.2 Expected volatility is based on our historical volatility. The risk-free interest rate for the expected term of the option is based on the average United States Treasury yield curve at the balance sheet date. The assumed dividend yield is based on our expectation of not paying dividends in the foreseeable future. The expected term of options granted is based on historical exercise data . The assumptions related to expected volatility and risk-free interest rate used for the valuation of stock options differ from those used for the valuation of employee stock purchase plan rights primarily due to the difference in their respective expected terms. The weighted-average estimated fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 were $2.79, $5.53 and $1.36 per share, respectively. The weighted-average estimated fair value of employee stock purchase plan rights granted during the years ended December 31, 2015, 2014 and 2013 were $2.88, $4.21 and $1.32 per share, respectively. Stock-based compensation expenses recognized in the Statements of Operations are based on awards ultimately expected to vest; accordingly, these expenses are reduced for estimated forfeitures. The Compensation-Stock Compensation Topic of the FASB ASC requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 3.8%, 4.0% and 6.1% for the years ended December 31, 2015, 2014 and 2013, respectively, based on historical experience. Stock-based compensation expenses for options and awards are recognized on a straight-line basis. S tock-based compensation expenses are allocated to research, development and patents or selling, general and administrative based upon the department to which the associated employee or non-employee reports. Total stock-based compensation expenses recognized for the years ended December 31, 2015, 2014 and 2013 was comprised as follows (in thousands): Years Ended December 31, 201 5 201 4 201 3 Research, development and patents $ 2,233 $ 2,575 $ 1,688 Selling, general and administrative 3,037 3,606 2,341 Total stock-based compensation expenses $ 5,270 $ 6,181 $ 4,029 The total fair value of options that vested during the years ended December 31, 2015, 2014 and 2013 was $5.8 million, $3.7 million and $3.9 million, respectively. At December 31, 2015, total unrecognized estimated compensation expenses related to non-vested stock options granted prior to that date were $7.1 million, expected to be recognized over a weighted average period of 1.6 years.
Income Tax, Policy [Policy Text Block]	Income Taxes We account for income taxes in accordance with provisions which set forth an asset and liability approach that requires the recognition of deferred tax assets and deferred tax liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not expected to be realized. In making such a determination, a review of all available positive and negative evidence is considered, including scheduled reversal of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. The provisions of the Income Taxes Topic of the FASB ASC defines a recognition threshold and measurement attributes for financial statement recognition and measurement of a tax provision taken or expected to be taken in a tax return. The Topic also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Under the Topic, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. We recognize interest and penalties related to uncertain tax positions as a component of the income tax provision.
Earnings Per Share, Policy [Policy Text Block]	Net Loss Per Share Basic earnings per share (“EPS”) is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income or loss by the weighted average number of common share equivalents outstanding for the period determined using the treasury-stock method. Dilutive common share equivalents include the dilutive effect of in-the-money shares, which is calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share, the amount of compensation cost, if any, for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital, if any, when the share is exercised are assumed to be used to repurchase shares in the current period. For purposes of this calculation, options to purchase common stock are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. The following table sets forth the computation of basic and diluted net loss per share for the respective periods. Years Ended December 31, 201 5 201 4 201 3 Numerator: Net loss (in thousands) $ (12,648 ) $ (12,150 ) $ (11,898 ) Denominator: Weighted average common shares 43,968,167 42,611,904 40,662,640 Basic and diluted net loss per share $ (0.29 ) $ (0.29 ) $ (0.29 ) Years Ended December 31, 201 5 201 4 201 3 O utstanding antidilutive securities not included in diluted net loss per share calculation: Options to purchase common stock 10,942,398 11,256,053 11,578,438
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Income (Loss) The Comprehensive Income Topic of the FASB ASC requires that all components of comprehensive income (loss), including net income (loss), be reported in the financial statements in the period in which they are recognized. Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Our accumulated other comprehensive income (loss) as of December 31, 2015, 2014 and 2013 consisted of unrealized gains or losses on investments available-for-sale and is reported in stockholders’ equity.
Segment Reporting, Policy [Policy Text Block]	Segment Reporting We operate in one business segment, which is the development and commercialization of flavor ingredients. All of our operations are located in the United States. Due to the confidential nature of our collaborations, it is impracticable to report geographic information related to revenues.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter; early adoption is permitted. We have not elected to early adopt and are currently evaluating the potential changes from this ASU to our future financial reporting and disclosures.

Note 1 - Organization and Sum16

Note 1 - Organization and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Accounts Receivable [Member]
Notes Tables
Schedule of Regulatory Assets [Table Text Block]	December 31, 201 5 201 4 PepsiCo $2.0 million (61%) — Firmenich $1.2 million (37%) $1.2 million (55%) Nestlé — $0.6 million (26%)
Sales Revenue, Net [Member]
Notes Tables
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	Years Ended December 31, 201 5 201 4 201 3 PepsiCo $14.9 million (60%) $14.5 million (53%) $16.2 million (55%) Firmenich $8.8 million (35%) $9.4 million (34%) $9.4 million (32%)
Schedule of Share-based Payment Award, Stock Options and Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]	Years Ended December 31, 201 5 201 4 201 3 Stock Options Expected volatility 65.6 % 71.8 % 70.2 % Risk-free interest rate 1.73 % 1.82 % 1.54 % Dividend yield 0.0 % 0.0 % 0.0 % Expected term (in years) 6.1 6.2 6.1 Employee Stock Purchase Plan Expected volatility 68.4 % 68.9 % 62.8 % Risk-free interest rate 0.47 % 0.23 % 0.10 % Dividend yield 0.0 % 0.0 % 0.0 % Expected term 1.2 1.3 1.2
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Years Ended December 31, 201 5 201 4 201 3 Research, development and patents $ 2,233 $ 2,575 $ 1,688 Selling, general and administrative 3,037 3,606 2,341 Total stock-based compensation expenses $ 5,270 $ 6,181 $ 4,029
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Years Ended December 31, 201 5 201 4 201 3 Numerator: Net loss (in thousands) $ (12,648 ) $ (12,150 ) $ (11,898 ) Denominator: Weighted average common shares 43,968,167 42,611,904 40,662,640 Basic and diluted net loss per share $ (0.29 ) $ (0.29 ) $ (0.29 ) Years Ended December 31, 201 5 201 4 201 3 O utstanding antidilutive securities not included in diluted net loss per share calculation: Options to purchase common stock 10,942,398 11,256,053 11,578,438

Note 2 - Balance Sheet Details

Note 2 - Balance Sheet Details (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Available-for-sale Securities [Table Text Block]	Amortized Cost Unrealized Gain Unrealized Loss Estimated United States government agency bonds $ 7,717 $ — $ (8 ) $ 7,709 Corporate bonds 10,447 — (20 ) 10,427 $ 18,164 $ — $ (28 ) $ 18,136 Amortized Cost Unrealized Gain Unrealized Loss Estimated United States Treasuries $ 1,500 $ — $ — $ 1,500 United States government agency bonds 16,341 — (6 ) 16,335 Corporate bonds 6,946 — (4 ) 6,942 $ 24,787 $ — $ (10 ) $ 24,777
Schedule of Unrealized Loss on Investments [Table Text Block]	Less than 12 Months Description Number of investments Estimated Fair Value Unrealized Losses United States government agency bonds 5 $ 5,558 $ (8 ) Corporate bonds 13 9,177 (20 ) Total temporarily impaired securities 18 $ 14,735 $ (28 )
Property, Plant and Equipment [Table Text Block]	As of December 31, 201 5 201 4 Scientific equipment $ 12,547 $ 12,546 Computer equipment 3,224 3,423 Furniture and fixtures 1,077 1,099 Leasehold improvements 13,228 13,211 30,076 30,279 Less accumulated depreciation and amortization (26,742 ) (26,444 ) $ 3,334 $ 3,835
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	As of December 31, 201 5 201 4 Accounts payable $ 352 $ 1,064 Accrued employee benefits 4,105 3,192 Other accrued expenses 846 1,647 $ 5,303 $ 5,903

Note 3 - Fair Value Disclosur18

Note 3 - Fair Value Disclosures (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	Fair Value Measurement at Reporting Date Using Description Balance as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial instruments owned: Money market funds $ 3,043 $ 3,043 $ — $ — U.S. government agency bonds 9,208 — 9,208 — Corporate bonds 10,427 — 10,427 — Total financial instruments owned $ 22,678 $ 3,043 $ 19,635 $ — Fair Value Measurement at Reporting Date Using Description Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial instruments owned: Money market funds $ 3,088 $ 3,088 $ — $ — U.S. Treasuries 1,500 1,500 — — U.S. government agency bonds 16,335 — 16,335 — Corporate bonds 6,942 — 6,942 — Total financial instruments owned $ 27,865 $ 4,588 $ 23,277 $ —

Note 5 - Commitments (Tables)

Note 5 - Commitments (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Operating Leases 2016 $ 3,139 2017 1,879 2018 2,870 2019 2,898 2020 2,927 Thereafter 9,500 Total minimum lease payments $ 23,213

Note 6 - Stockholders' Equity (

Note 6 - Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Shares Weighted Average Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 11,256,053 $ 6.40 Granted 1,265,210 $ 4.62 Exercised (698,851 ) $ 3.07 Cancelled (880,014 ) $ 8.90 Outstanding at December 31, 2015 10,942,398 $ 6.20 5.2 $ 4,461 Vested or expected to vest at December 31, 2015 10,842,660 $ 6.21 5.2 $ 4,442 Exercisable at December 31, 2015 8,514,796 $ 6.46 4.3 $ 3,682
Schedule of Share-based Compensation Shares Reserved for Future Issuance [Table Text Block]	December 31, 201 5 Common stock options granted and outstanding 10,942,398 Common stock options reserved for future grant 2,238,918 Common stock reserved under Purchase Plan 2,093,282 Total common stock shares reserved for future issuance 15,274,598

Note 7 - Income Taxes (Tables)

Note 7 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	Years ended 2015 20 14 Deferred tax assets: Net operating loss carryforwards $ 38,200 $ 39,900 Capitalized research and development 25,900 27,200 Research and development credits 11,200 10,700 Stock compensation 8,500 9,600 Deferred revenues 1,300 2,300 Other, net 2,900 2,300 Total deferred tax assets 88,000 92,000 Total deferred tax liabilities — — Net deferred tax assets 88,000 92,000 Valuation allowance for deferred tax assets (88,000 ) (92,000 ) Net deferred tax assets $ — $ —
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	201 5 201 4 201 3 Federal income taxes at 35% $ (4,426 ) $ (4,252 ) $ (4,164 ) State income tax, net of Federal benefit 1 (622 ) (581 ) Tax effect on non-deductible expenses and credits 968 138 612 Expiring state net operating losses 143 218 — Research credits (635 ) (1,223 ) (823 ) Uncertain tax positions 2,038 306 206 Rate change 6,066 491 — Other (10 ) 75 (350 ) Change in valuation allowance (4,145 ) 4,869 5,100 $ — $ — $ —
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	2015 2014 2013 Balance at beginning of year $ 4,360 $ 3,989 $ 3,629 Additions based on tax positions related to the current year 195 371 242 Additions based on tax positions of prior years 2,994 — 118 Reductions based on tax positions of prior years (102 ) Balance at end of year $ 7,447 $ 4,360 $ 3,989

Note 8 - Summary of Quarterly22

Note 8 - Summary of Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Quarterly Financial Information [Table Text Block]	Year Ended December 31, 201 5 First Quarter Second Quarter Third Quarter Fourth Quarter Selected Quarterly Financial Data: Revenues $ 5,006 $ 6,213 $ 7,393 $ 6,270 Total operating expenses 9,583 8,950 9,807 9,232 Net loss (4,569 ) (2,728 ) (2,405 ) (2,946 ) Basic and diluted net loss per common share $ (0.11 ) $ (0.06 ) $ (0.05 ) $ (0.07 ) Year Ended December 31, 201 4 First Quarter Second Quarter Third Quarter Fourth Quarter Selected Quarterly Financial Data: Revenues $ 8,204 $ 7,343 $ 5,858 $ 6,257 Total operating expenses 10,220 9,992 10,275 9,362 Net loss (2,008 ) (2,641 ) (4,406 ) (3,095 ) Basic and diluted net loss per common share $ (0.05 ) $ (0.06 ) $ (0.10 ) $ (0.07 )

Note 1 - Organization and Sum23

Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ / item in Millions	12 Months Ended
	Dec. 31, 2015USD ($)$ / shares$ / item	Dec. 31, 2014USD ($)$ / shares	Dec. 31, 2013USD ($)$ / shares
Maximum [Member]
Available for Sale Securities Maturity Term	2 years
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Employee Stock Purchase Plan Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 2.88	$ 4.21	$ 1.32
Allowance for Doubtful Accounts Receivable	$ 0
Tenant Improvement Allowance per Square Foot | $ / item	155
Payments for (Proceeds from) Tenant Allowance	$ (10,100,000)
Research and Development Expense	22,400,000	$ 24,900,000	$ 27,100,000
Patent Expense	1,700,000	1,700,000	1,500,000
Defined Contribution Plan, Cost Recognized	$ 183,000	$ 199,000	$ 187,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 2.79	$ 5.53	$ 1.36
Share-based Compensation Arrangement by Share-based Payment Award, Estimated Pre-vesting Forfeiture Rate	3.80%	4.00%	6.10%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 5,800,000	$ 3,700,000	$ 3,900,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 7,100,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 219 days
Number of Reportable Segments	1

Note 1 - Summary of Concentrati

Note 1 - Summary of Concentration Risk, Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | PepsiCo Inc. [Member]
Concentration Risk, Revenue	$ 14,900	$ 14,500	$ 16,200
Concentration Risk, Percentage	60.00%	53.00%	55.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Firmenich [Member]
Concentration Risk, Revenue	$ 8,800	$ 9,400	$ 9,400
Concentration Risk, Percentage	35.00%	34.00%	32.00%
Concentration Risk, Revenue	$ 24,882	$ 27,662	$ 29,287

Note 1 - Summary of Concentra25

Note 1 - Summary of Concentration Risk, Accounts Receivable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Customer Concentration Risk [Member] | Accounts Receivable [Member] | PepsiCo Inc. [Member]
Concentration Risk, Accounts receivable	$ 2,000,000
Concentration Risk, Percentage	61.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Firmenich [Member]
Concentration Risk, Accounts receivable	$ 1,200,000	$ 1,200,000
Concentration Risk, Percentage	37.00%	55.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Nestle [Member]
Concentration Risk, Accounts receivable		$ 600,000
Concentration Risk, Percentage		26.00%
Concentration Risk, Accounts receivable	$ 3,193,000	$ 2,276,000

Note 1 - Summary of Weighted Av

Note 1 - Summary of Weighted Average Assumptions Using the Black-Scholes Model (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Option [Member]
Expected volatility	65.60%	71.80%	70.20%
Risk-free interest rate	1.73%	1.82%	1.54%
Dividend yield	0.00%	0.00%	0.00%
Expected term (in years)	6 years 36 days	6 years 73 days	6 years 36 days
Employee Stock Purchase Plan [Member]
Expected volatility	68.40%	68.90%	62.80%
Risk-free interest rate	0.47%	0.23%	0.10%
Dividend yield	0.00%	0.00%	0.00%
Expected term (in years)	1 year 73 days	1 year 109 days	1 year 73 days

Note 1 - Organization and Sum27

Note 1 - Organization and Summary of Significant Accounting Policies - Summary of Stock-based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Research and Development Expense [Member]
Stock-based Compensation	$ 2,233	$ 2,575	$ 1,688
Selling, General and Administrative Expenses [Member]
Stock-based Compensation	3,037	3,606	2,341
Stock-based Compensation	$ 5,270	$ 6,181	$ 4,029

Note 1 - Computation of Basic a

Note 1 - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Numerator:
Net loss	$ (12,648)	$ (12,150)	$ (11,898)
Denominator:
Weighted average common shares (in shares)	43,968,167	42,611,904	40,662,640
Basic and diluted net loss per share (in dollars per share)	$ (0.29)	$ (0.29)	$ (0.29)
Outstanding antidilutive securities not included in diluted net loss per share calculation:
Options to purchase common stock (in shares)	10,942,398	11,256,053	11,578,438

Note 2 - Balance Sheet Detail29

Note 2 - Balance Sheet Details (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	$ 18,100
Depreciation	$ 1,098	$ 2,239	$ 2,847

Note 2 - Balance Sheet Detail30

Note 2 - Balance Sheet Details - Summary of Investments Available-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
US Government Agencies Debt Securities [Member]
Amortized Cost	$ 7,717	$ 16,341
Unrealized Gain
Unrealized Loss	$ (8)	$ (6)
Estimated Fair Value	7,709	16,335
US Treasury Securities [Member]
Amortized Cost		$ 1,500
Unrealized Gain
Unrealized Loss
Estimated Fair Value		$ 1,500
Corporate Debt Securities [Member]
Amortized Cost	$ 10,447	$ 6,946
Unrealized Gain
Unrealized Loss	$ (20)	$ (4)
Estimated Fair Value	10,427	6,942
Amortized Cost	$ 18,164	$ 24,787
Unrealized Gain
Unrealized Loss	$ (28)	$ (10)
Estimated Fair Value	$ 18,136	$ 24,777

Note 2 - Summary of Temporarily

Note 2 - Summary of Temporarily Impaired Investments (Details) $ in Thousands	Dec. 31, 2015USD ($)
US Government Agencies Debt Securities [Member]
Number of investments	5
Less than 12 Months of Temporary Impairment, Estimated Fair Value	$ 5,558
Less than 12 Months of Temporary Impairment, Unrealized Losses	$ (8)
Corporate Debt Securities [Member]
Number of investments	13
Less than 12 Months of Temporary Impairment, Estimated Fair Value	$ 9,177
Less than 12 Months of Temporary Impairment, Unrealized Losses	$ (20)
Number of investments	18
Less than 12 Months of Temporary Impairment, Estimated Fair Value	$ 14,735
Less than 12 Months of Temporary Impairment, Unrealized Losses	$ (28)

Note 2 - Summary of Property an

Note 2 - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Scientific Equipment [Member]
Property and Equipment, Gross	$ 12,547	$ 12,546
Computer Equipment [Member]
Property and Equipment, Gross	3,224	3,423
Furniture and Fixtures [Member]
Property and Equipment, Gross	1,077	1,099
Leasehold Improvements [Member]
Property and Equipment, Gross	13,228	13,211
Property and Equipment, Gross	30,076	30,279
Less accumulated depreciation and amortization	(26,742)	(26,444)
Property and Equipment, Net	$ 3,334	$ 3,835

Note 2 - Summary of Accounts Pa

Note 2 - Summary of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts payable	$ 352	$ 1,064
Accrued employee benefits	4,105	3,192
Other accrued expenses	846	1,647
Accounts payable, accrued expenses and other current liabilities	$ 5,303	$ 5,903

Note 3 - Fair Value Disclosur34

Note 3 - Fair Value Disclosures (Details Textual) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring	$ 0
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0	$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	$ 0	$ 0

Note 3 - Fair Value Disclosur35

Note 3 - Fair Value Disclosures - Summary of Assets Measured On a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Financial instruments owned
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]
Financial instruments owned		$ 1,500
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Financial instruments owned
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Money market funds	$ 3,043	3,088
Financial instruments owned	3,043	4,588
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Financial instruments owned	9,208	$ 16,335
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member]
Financial instruments owned
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Financial instruments owned	$ 10,427
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Money market funds
Financial instruments owned	$ 19,635	$ 23,277
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member]
Financial instruments owned
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member]
Financial instruments owned
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member]
Financial instruments owned
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Money market funds
Financial instruments owned
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member]
Financial instruments owned	$ 9,208	$ 16,335
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member]
Financial instruments owned		1,500
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member]
Financial instruments owned	10,427
Fair Value, Measurements, Recurring [Member]
Money market funds	3,043	3,088
Financial instruments owned	22,678	$ 27,865
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Financial instruments owned
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Financial instruments owned		$ 6,942
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member]
Financial instruments owned
US Government Agencies Debt Securities [Member]
Financial instruments owned	7,709	$ 16,335
US Treasury Securities [Member]
Financial instruments owned		1,500
Corporate Debt Securities [Member]
Financial instruments owned	10,427	6,942
Financial instruments owned	$ 18,136	$ 24,777

Note 4 - Product Discovery, D36

Note 4 - Product Discovery, Development and Commercialization Collaborations (Details Textual)	Jul. 01, 2009	May. 31, 2014USD ($)	Sep. 30, 2010USD ($)	Jun. 30, 2010USD ($)	Sep. 30, 2010USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Jul. 31, 2014USD ($)	Jul. 31, 2014	Apr. 30, 2013USD ($)
Firmenich [Member] | Development Milestone [Member]
Collaborative Arrangements Number of Milestones Achieved						0	1	1
Revenue Recognition, Milestone Method, Revenue Recognized						$ 0	$ 500,000	$ 667,000
Firmenich [Member] | License Fees, Research and Development Funding and Cost Reimbursements [Member]
Collaborative Arrangements, Cumulative Payments Received						50,400,000
Firmenich [Member] | Milestone Payments [Member]
Collaborative Arrangements, Cumulative Payments Received							3,400,000
Firmenich [Member] | Minimum [Member]
Collaborative Arrangements Term	2 years
Firmenich [Member] | Maximum [Member]
Collaborative Arrangements, Potential Additional Future Payments If All Goals and Milestones Are Achieved						57,100,000
Firmenich [Member]
Collaborative Arrangements, Number of Consecutive Options to Extend Research Funding Period										3
Collaborative Arrangements, Term under Each Consecutive Options to Extend Research Funding Period										1 year
Collaborative Arrangements, Number of Installments for Payment of License Fee										3
Collaborative Arrangements, Additional License Fee Payments											$ 5,000,000
Collaborative Arrangements, Payment Received								4,000,000
Collaborative Arrangements, Additional License Fee, Payments Remaining						1,000,000
Collaborative Arrangements, Additional Research Funding								13,000,000
Development Revenues						6,200,000	6,500,000	6,900,000
Royalty Revenue						2,000,000	1,700,000	$ 1,100,000
Deferred Revenue						375,000	$ 1,700,000
Collaborative Arrangements, Potential Additional Future Payments If All Goals and Milestones Are Achieved						$ 3,300,000
PepsiCo Inc. [Member] | Development Milestone [Member]
Collaborative Arrangements Number of Milestones Achieved						1	0	0
Revenue Recognition, Milestone Method, Revenue Recognized						$ 0	$ 750,000	$ 0
PepsiCo Inc. [Member] | Milestone Payments [Member]
Collaborative Arrangements, Cumulative Payments Received						3,000,000
PepsiCo Inc. [Member] | Upfront Payment [Member]
Collaborative Arrangements, Payment Received			$ 22,500,000	$ 7,500,000	$ 30,000,000
PepsiCo Inc. [Member] | Research and Development Funding [Member]
Collaborative Arrangements, Payment Received									$ 32,000,000
PepsiCo Inc. [Member] | Upfront Fees Research and Development Funding and Cost Reimbursements [Member]
Collaborative Arrangements, Cumulative Payments Received						78,800,000
PepsiCo Inc. [Member] | Maximum [Member]
Collaborative Arrangements, Potential Additional Future Payments If All Goals and Milestones Are Achieved						85,100,000
PepsiCo Inc. [Member]
Development Revenues						10,000,000	13,000,000	16,200,000
Deferred Revenue						3,100,000	4,000,000
Collaborative Arrangements, Potential Additional Future Payments If All Goals and Milestones Are Achieved						3,300,000
Collaborative Arrangements, Term of Extension Research Programs		2 years
Collaborative Arrangements, Aggregate Committed Payments Extension Period		$ 17,600,000
Development Milestone [Member] | Minimum [Member]
Collaborative Arrangements Milestone Amount						500,000
Development Milestone [Member] | Maximum [Member]
Collaborative Arrangements Milestone Amount						1,000,000
Commercial Milestone [Member] | Minimum [Member]
Collaborative Arrangements Milestone Amount						500,000
Commercial Milestone [Member] | Maximum [Member]
Collaborative Arrangements Milestone Amount						$ 1,500,000
Collaborative Arrangements Effective Royalty Rate						4.00%
Development Revenues						$ 17,838,000	21,827,000	24,657,000
Royalty Revenue						$ 7,044,000	$ 5,835,000	$ 4,630,000

Note 5 - Commitments (Details T

Note 5 - Commitments (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Feb. 28, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Laboratory and Office Facility [Member]
Lessee Leasing Arrangements, Operating Leases, Renewal Term	7 years
License Agreement Terms [Member]
Contractual Obligation, Due in Next Fiscal Year		$ 204,000
Contractual Obligation, Due in Second Year		161,000
Contractual Obligation, Due in Third Year		$ 163,000
Operating Leases Rent Increase Percentage Annually		1.00%
Operating Leases, Rent Expense		$ 2,200,000	$ 1,700,000	$ 1,700,000

Note 5 - Summary of Estimated A

Note 5 - Summary of Estimated Annual Future Minimum Rental Payments Under Operating Leases (Details) $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 3,139
2,017	1,879
2,018	2,870
2,019	2,898
2,020	2,927
Thereafter	9,500
Total minimum lease payments	$ 23,213

Note 6 - Stockholders' Equity39

Note 6 - Stockholders' Equity (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)shares
Restricted Stock Purchase Rights [Member] | Equity Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercise Price | $ / shares	$ 0.35
Restricted Stock Purchase Rights [Member] | Equity Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercise Price | $ / shares	$ 0.94
Restricted Stock Purchase Rights [Member] | Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	457,069
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award	131,152
Employee Stock Option [Member] | Equity Incentive Plan [Member] | Minimum [Member] | Ten Percent Stockholder [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	110.00%
Employee Stock Option [Member] | Equity Incentive Plan [Member] | Maximum [Member] | Ten Percent Stockholder [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	5 years
Employee Stock Option [Member] | Equity Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Employee Stock Option [Member] | Equity Incentive Plan [Member] | Ten Percent Stockholder [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Ownership Percentage Trigger	10.00%
Employee Stock Option [Member] | Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,238,918
Non Statutory Stock Options [Member] | Equity Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	18,935,450
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,238,918
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $	$ 1,800,000	$ 8,100,000	$ 844,000
Proceeds from Stock Options Exercised | $	$ 2,100,000	$ 8,600,000	$ 1,400,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	5,633,096
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Employee Stock Ownership Plan ESOP Offering Period	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Period Within Offering Period	180 days
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Percentage of Eligible Compensation Authorized to Be Withheld	15.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans	3,539,814
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased | $ / shares	$ 2.65
Contingent Convertible Preferred Stock [Member]
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares authorized (in shares)	7,500,000	7,500,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001
Preferred Stock Number of Series	1
Preferred stock, shares outstanding (in shares)	0	0
Share Price | $ / shares	$ 3.77

Note 6 - Summary of Stock Optio

Note 6 - Summary of Stock Option Activity Under the Plan (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Outstanding (in shares) | shares	11,256,053
Outstanding (in dollars per share) | $ / shares	$ 6.40
Granted (in shares) | shares	1,265,210
Granted (in dollars per share) | $ / shares	$ 4.62
Exercised (in shares) | shares	(698,851)
Exercised (in dollars per share) | $ / shares	$ 3.07
Cancelled (in shares) | shares	(880,014)
Cancelled (in dollars per share) | $ / shares	$ 8.90
Outstanding (in shares) | shares	10,942,398
Outstanding (in dollars per share) | $ / shares	$ 6.20
Outstanding, Weighted Average Remaining Contractual Term	5 years 73 days
Outstanding , Aggregate Intrinsic Value | $	$ 4,461
Vested or expected to vest, Shares (in shares) | shares	10,842,660
Vested or expected to vest , Weighted AverageExercise Price (in dollars per share) | $ / shares	$ 6.21
Vested or expected to vest, Weighted Average Remaining Contractual Term	5 years 73 days
Vested or expected to vest, Aggregate Intrinsic Value | $	$ 4,442
Exercisable, Shares (in shares) | shares	8,514,796
Exercisable, Weighted AverageExercise Price (in dollars per share) | $ / shares	$ 6.46
Exercisable, Weighted Average Remaining Contractual Term	4 years 109 days
Exercisable, Aggregate Intrinsic Value | $	$ 3,682

Note 6 - Summary of Shares of C

Note 6 - Summary of Shares of Common Stock Reserved for Future Issuance (Details)	Dec. 31, 2015shares
Employee Stock Option [Member]
Common stock options granted and outstanding (in shares)	10,942,398
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,238,918
Employee Stock Purchase Plan [Member]
Total common stock shares reserved for future issuance (in shares)	2,093,282
Common stock options granted and outstanding (in shares)	10,942,398
Total common stock shares reserved for future issuance (in shares)	15,274,598

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($)	12 Months Ended	36 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Domestic Tax Authority [Member] | Research and Development Tax Credit Carry Forwards [Member]
Deferred Tax Assets Tax Credit Carry Forwards Research Subject to Expiration	$ 944,000	$ 944,000
Domestic Tax Authority [Member]
Operating Loss Carryforwards	110,200,000	110,200,000
Tax Credit Carryforward, Amount	9,700,000	9,700,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	3,100,000	3,100,000
State and Local Jurisdiction [Member] | California Franchise Tax Board [Member]
Operating Loss Carryforwards	91,600,000	91,600,000
Tax Credit Carryforward, Amount	8,100,000	8,100,000
Income Tax Examination, Penalties and Interest Expense		0
Deferred Tax Assets, Valuation Allowance	88,000,000	$ 88,000,000	$ 92,000,000
Excess Tax Benefit from Share-based Compensation	$ 3,700,000

Note 7 - Significant Components

Note 7 - Significant Components of Net Deferred Tax Assets (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Net operating loss carryforwards	$ 38,200,000	$ 39,900,000
Capitalized research and development	25,900,000	27,200,000
Research and development credits	11,200,000	10,700,000
Stock compensation	8,500,000	9,600,000
Deferred revenues	1,300,000	2,300,000
Other, net	2,900,000	2,300,000
Total deferred tax assets	88,000,000	92,000,000
Net deferred tax assets	88,000,000	92,000,000
Valuation allowance for deferred tax assets	$ (88,000,000)	$ (92,000,000)
Net deferred tax assets

Note 7 - Summary of Reconciliat

Note 7 - Summary of Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal income taxes at 35%	$ (4,426)	$ (4,252)	$ (4,164)
State income tax, net of Federal benefit	1	(622)	(581)
Tax effect on non-deductible expenses and credits	968	138	$ 612
Expiring state net operating losses	143	218
Research credits	(635)	(1,223)	$ (823)
Uncertain tax positions	2,038	306	$ 206
Rate change	6,066	491
Other	(10)	75	$ (350)
Change in valuation allowance	$ (4,145)	$ 4,869	$ 5,100

Note 7 - Summary of Reconcili45

Note 7 - Summary of Reconciliation of Income Taxes (Details) (Parentheticals)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal income tax rate	35.00%	35.00%	35.00%

Note 7 - Summary of Rollforward

Note 7 - Summary of Rollforward of Changes in the Company's Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Balance at beginning of year	$ 4,360	$ 3,989	$ 3,629
Additions based on tax positions related to the current year	195	$ 371	242
Additions based on tax positions of prior years	2,994		$ 118
Reductions based on tax positions of prior years	(102)
Balance at end of year	$ 7,447	$ 4,360	$ 3,989

Note 8 - Summary of the Unaudit

Note 8 - Summary of the Unaudited Quarterly Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues	$ 6,270	$ 7,393	$ 6,213	$ 5,006	$ 6,257	$ 5,858	$ 7,343	$ 8,204	$ 24,882	$ 27,662	$ 29,287
Total operating expenses	9,232	9,807	8,950	9,583	9,362	10,275	9,992	10,220	37,572	39,849	41,220
Net loss	$ (2,946)	$ (2,405)	$ (2,728)	$ (4,569)	$ (3,095)	$ (4,406)	$ (2,641)	$ (2,008)	$ (12,648)	$ (12,150)	$ (11,898)
Basic and diluted net loss per common share (in dollars per share)	$ (0.07)	$ (0.05)	$ (0.06)	$ (0.11)	$ (0.07)	$ (0.10)	$ (0.06)	$ (0.05)	$ (0.29)	$ (0.29)	$ (0.29)