XML 26 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
10. Contractual Obligations
 9 Months Ended
Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Contractual Obligations

The Company has certain contractual commitments as of September 30, 2016 for future periods, including office leases, minimum guaranteed compensation payments and other agreements as described in the following table and associated footnotes:

 

        Research and         
Year ending   Office   License   Compensation   Total 
December 31,   Lease (1)   Agreements (2)   Agreements (3)   Obligations 
 2016   $17,490   $46,875   $87,500   $151,865 
 2017    69,960    187,500    305,429    562,889 
 2018    40,810    187,500    290,000    518,310 
 2019    –    187,500    54,375    241,875 
 2020    –    187,500    –    187,500 
 Total   $128,260   $796,875   $737,304   $1,662,439 

 

________________________________

  (1) Consists of rent for the Company’s Santa Barbara Facility expiring on July 31, 2018.

 

  (2) Consists of license maintenance fees to Temple University in the amount of $187,500 paid annually through the life of the underlying patents or until otherwise terminated by either party.

 

  (3) Consists of base salary and certain contractually-provided benefits, to i) an executive officer, pursuant to an employment agreement at a base salary of $290,000 per year and, as amended by the Board on March 10, 2016, expires on March 8, 2019; and ii) and a severance agreement of a former officer in the amount of $45,429.

 

Effective May 1, 2016, the Company vacated the Santa Barbara Facility and subleased the space through the term of the master lease, terminating July 31, 2018. Under the master lease, the Company is committed to pay $5,830 per month. This expense is offset by sublease income of $4,500 per month, for a net monthly expense of $1,330, totaling $35,910 over the remaining 27-month term of the master lease. At September 30, 2016, the Company accrued $29,260 to account for the estimated loss in the Santa Barbara Facility lease agreement which is reflected in as part of Accounts Payable and accrued expense on the accompanying consolidated balance sheet.

 

Effective June 1, 2016, the Company relocated its Santa Barbara office to an office space located at 5266 Hollister Avenue, Suite 219, Santa Barbara, CA 93111, under a twelve-month lease at a lease rate of $751 per month. This expense is reflected in Operating Expenses on the accompanying consolidated statements of operations.