Note 6. Commitments and Contingencies Commitments Facility Lease. In August 2012, we entered into an operating lease arrangement to lease approximately 4,595 rentable square feet of office space located in Solana Beach, California, which we use as our corporate headquarters. The lease commenced in September 2012, and will expire in September 2014. The monthly rent is approximately $14,000, which will increase by 3.0% annually after the first year of the term of the lease. We recognize rent expense on a straight-line basis over the lease term. We will be responsible for the cost of all of the utilities of the leased premises, and beginning in 2014, we will also be responsible for additional rent consisting of our proportional share of any increased operating costs at the site. We were required to provide a security deposit of $43,000 upon signing the lease, which is included in other long-term assets in the accompanying Condensed Balance Sheets. In August 2012, we also entered into a lease termination agreement associated with our previous headquarters (the  Old Lease ). Under the Termination Agreement, the Old Lease expired on September 7, 2012 rather than the original expiration date of December 24, 2016. In exchange for the termination of the Old Lease, we forfeited to the landlord a standby letter of credit in the amount of $200,000 provided to the landlord as a deposit in connection with the execution of the Old Lease. We have no remaining obligations associated with the Old Lease. The costs associated with the termination of the Old Lease were not material and have been included in selling, general and administrative expenses in our condensed statements of operations and comprehensive loss for the nine months ended September 30, 2012. Procter &amp; Gamble. In August 2010, we entered into a co-promotion agreement with P&amp;G under which P&amp;G provided sales support to promote Silenor in the U.S. We recognized the revenue from Silenor product sales generated by the promotional efforts of P&amp;G, and in ret