xa0; 1 ACELRX PHARMACEUTICALS, INC. Financial Statements and Supplementary Data 71 Item 9. DSUVIA is not available in retail pharmacies or for outpatient use. The rights to market and sell Zalviso in the Territory revert back to us in May 2021. Each of the three Phase 3 trials successfully achieved its primary endpoint. Importantly, none of these device errors resulted in an over-dosing event. We also rely on trade secrets to protect DSUVIA, DZUVEO and Zalviso. Even if the patents do successfully issue, third parties may challenge the patents. This may render our products obsolete or non-competitive. This is an internationally recognized quality standard for medical devices. The requirements governing drug pricing vary widely from country to country. We recognize and support the growth and development of our employees. The EC granted marketing approval of DZUVEO in June 2018. As a result, the development timeline for Zalviso was further extended. There were no SAEs deemed related to study drug. Grünenthal terminated the collaboration, effective November 13, 2020. xa0; DSUVIA was approved in the United States with a REMS program. If Zalviso is approved in the United States, it will also require a REMS program. On August 31, 2020, PDL announced it sold its royalty interest for Zalviso to SWK. Such arrangements may not be available on favorable terms, if at all. Our contract manufacturers apply for quotas on our behalf. Our business may suffer if a finding of infringement is established. xa0; Recent Sales of Unregistered Securities None. We will not detail and promote XERAVA™ (eravacycline) under this agreement. We sell our products primarily through wholesale distributors. We estimated this overhead rate by utilizing forecasted expenditures. This re-evaluation may shorten or lengthen the period over which revenue is recognized. Changes to these estimates are recorded on a cumulative catch-up basis. Cost is determined using the first-in, first-out method for all inventories. The interest rate implicit in lease contracts is typically not readily determinable. xa0; Lease expense is recognized over the expected term on a straight-line basis. As a result, we no longer recognize deferred rent on the balance sheet. The total net proceeds from this offering were approximately $10.0 million. As of December 31, 2020, the accrued balance under the Loan Agreement was $21.0 million. xa0; Item 16. xa0; We conducted our audits in accordance with the standards of the PCAOB. Zalviso is approved in Europe and is in late-stage development in the United States. Actual results could differ from those estimates. All intercompany accounts and transactions have been eliminated in consolidation. Such amortization and accretion is included in interest income or expense. The cost of securities sold is based on specific identification. For further discussion, see Note 6 “Long-Term Debt”. This guidance provides a unified model to determine how revenue is recognized. The Company estimated this overhead rate by utilizing forecasted expenditures. For all other performance obligations, the Company uses a cost- plus margin approach. The Company eliminated 30 positions, primarily within the commercial organization. xa0; The headcount reduction was completed in the first quarter of 2020. 2021-01, “Reference Rate Reform (Topic 848): Scope