Note 7 - Commitments and Contingencies
|9 Months Ended|
Sep. 30, 2020
|Notes to Financial Statements|
|Commitments and Contingencies Disclosure [Text Block]||
7. Commitments and Contingencies
In addition to the commitments and contingencies described elsewhere in these notes, see below for a discussion of the Company's commitments and contingencies as of September 30, 2020.
Lease Obligations Payable
During the nine months ended September 30, 2020, the Company did not enter into any lease arrangements requiring any additional right-of-use assets or liabilities to be recorded.
The following summarizes quantitative information about the Company's operating leases for the three and nine months ended September 30, 2020 and 2019, respectively (in thousands):
The Company recorded approximately $10,000 and $31,000 in sublease income from a related party for the three and nine months ended September 30, 2020, respectively. Sublease income is recorded as other income, net on the Company's condensed consolidated statement of operations and comprehensive loss.
Other supplemental cash flow information for operating leases is as follows (in thousands):
At September 30, 2020, future minimum liabilities under ASC 842 for the Company's operating leases were as follows (in thousands):
As of September 30, 2020, the weighted average remaining lease term for operating leases is 2.7 years, and the weighted average discount rate is 9.6%. The interest rate implicit in lease contracts is typically not readily determinable and as such, the Company uses an incremental borrowing rate based on a peer analysis using information available at the commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment.
MD Anderson - Total expenses related to the Company's license agreements with MD Anderson were $61,000 and $60,000 for the three months ended September 30, 2020 and 2019, respectively, and $183,000 and $180,000 for the nine months ended September 30, 2020 and 2019, respectively.
HPI - On March 16, 2020, the Company entered into two agreements with a related party, Houston Pharmaceuticals, Inc. (HPI). The first agreement, which has a term of two years, continues a prior consulting arrangement with HPI on the Company's licensed molecules and requires payments for $43,500 per quarter to HPI. The second agreement, which can be cancelled withdays' notice by either party, allows the Company's employees access to laboratory equipment owned by HPI for a payment of $15,000 per quarter to HPI. Total expenses related to the Company's agreements with HPI were $59,000 and zero for the three months ended September 30, 2020 and 2019, respectively, and $226,000 and $75,000 for the nine months ended September 30, 2020 and 2019, respectively.
Sponsored Research Agreements with MD Anderson - MBI entered into a Sponsored Laboratory Study Agreement with MD Anderson expiring in October 2021. The expenses recognized under this MD Anderson agreement with regards to the Sponsored Laboratory Study Agreement were $212,000 and $177,000 for the three months ended September 30, 2020 and 2019, respectively, and $537,000 and $366,000 for the nine months ended September 30, 2020 and 2019, respectively.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef