12. SEVERANCE AGREEMENT WITH FORMER CEO

        In 2014, we entered into a severance agreement with our former CEO pursuant to his resignation as CEO and member of the Board of Directors effective November 20, 2014, and his termination of employment effective December 31, 2014. The severance agreement provides for cash severance payments of $1.1 million payable in installments over a duration of 18 months beginning on January 1, 2015. Also as part of the severance arrangement, we extended the date to which our former CEO had the right to exercise his vested options. In addition, we also accelerated the vesting of certain of his unvested stock options (refer to Note 4). As of December 31, 2014, our severance liability of $1.1 million is included as part of Accrued Compensation account in the Balance Sheets.