Revenue recognition Effective January 1, 2018, the Company adopted Accounting Standards Update, or ASU, No. 2014 - 09, " Revenue from Contracts with Customers (Topic 606 ) ", and the related amendments that were issued by the Financial Accounting Standards Board, or FASB. Topic 606 establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entitys contracts with customers. The Company may enter into product development agreements with collaborative partners for the research and development of products for the treatment of urological diseases. The terms of the agreements may include nonrefundable signing and licensing fees, development and sales-based milestone payments and royalties on any product sales derived from collaborations. To the extent that the collaborative partner is deemed to be a customer, a party that has contracted with a company to obtain goods and services that are an output of the companys ordinary activities in exchange for consideration, the Company will account for the product development agreement in accordance with Topic 606. The Company will only recognize revenue if a contract meets the following parameters: the parties have approved the contract, each partys rights to goods and services to be transferred can be identified, the payment terms are defined, the contract has commercial substance and it is probable the Company will collect substantially all of the consideration. Once it is determined that a contract exists, the Company will evaluate the performance obligations within the product development agreement. Performance obligations will be analyzed to determine whether the performance obligations are distinct or whether they must be accounted for as a single unit of multiple related distinct goods and services. The Company will then perform an analysis to determine the total transaction price that the Company expects to receive from satisfying the performance obligations in the agreement. To the extent that the agreement includes variable consideration, amounts which can vary depending on the occurrence or nonoccurrence of a future event, the amount included in the total transaction price may be limited to the amount which is probable that a significant reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Development milestones associated with the successful outcome of a clinical trial or regulatory approval are highly susceptible to factors outside the influence of the Company and therefore any revenue associated with these milestones are not recognized as revenue until the occurrence of the event assuming its related performance obligation has been completed. Sales-based royalty revenue and sales-based milestone payments will be recognized when the later of the following events occurs: the subsequent sale occurs or the performance obligation to which some or all of the sales-based royalty or sales-based milestone payment has been allocated has been satisfied. The calculated transaction price will then be allocated to the separate performance obligations based upon the relative standalone selling price of the performance obligations. If standalone selling price cannot be determined, a residual approach may be used to estimate the standalone selling price when the selling price for a good or service is highly variable or uncertain. For each performance obligation, the Company must determine the period over which the performance obligations will be satisfied, and revenue recognized. Revenue will be recognized over time if the Company satisfies the performance obligation over a period of time whereas revenue will be recognized at a point in time if the performance obligation is satisfied at a specific point in time. Revenue related to the transfer of an intellectual property license will be recognized either upon the transfer of the license or over a period of time depending upon whether or not the transfer of the intellectual property license is a distinct performance obligation, or the transfer of the intellectual property license is not distinct from other goods and services included in the agreement. Other factors which may impact the Companys timing for revenue recognition related to the transfer of the license will be a determination of whether the license is a right to use the Companys intellectual property as it exists at the point in time the license is granted or whether the license provides access to the Companys intellectual property as it exists throughout the license period.