Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.20.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies 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 June 30, 2020.

Lease Obligations Payable

During the six months ended June 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 six months ended June 30, 2020 and 2019, respectively (in thousands):

Three Months Ended June 30, Six Months Ended June 30,
2020 2019 2020 2019
Lease cost:
Operating lease cost $ 29    $   $ 58    $ 16   
Short-term lease cost   12      26   
Variable lease cost     14    12   
Total $ 40    $ 27    $ 81    $ 54   

The Company recorded approximately $10,000 and $21,000 in sublease income from a related party for the three and six months ended June 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):
Three Months Ended June 30, Six Months Ended
June 30,
2020 2019 2020 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 33    $ 13    $ 66    $ 21   
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases $ —    $ —    $ —    $ 110   
At June 30, 2020, future minimum liabilities under ASC 842 for the Company's operating leases were as follows (in thousands):
Maturity of lease liabilities As of June 30, 2020
2020 (remaining six months) $ 68   
2021 138   
2022 105   
2023 56   
2024 10   
2025 and thereafter —   
Total lease payments 377   
Less: imputed interest (47)  
Present value of operating lease liabilities $ 330   

As of June 30, 2020, the weighted average remaining lease term for operating leases is 2.9 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.

Licenses

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 June 30, 2020 and 2019, respectively, and $122,000 and $120,000 for the six months ended June 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 with sixty days' 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 $58,500 and zero for the three months ended June 30, 2020 and 2019, respectively, and $266,000 and $75,000 for the six months ended June 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 $95,000 for the three months ended June 30, 2020 and 2019, respectively, and $358,000 and $189,000 for the six months ended June 30, 2020 and 2019, respectively.