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Commitments
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments

9. Commitments

 

Operating and Finance Leases

 

The Company leases its corporate space in Minneapolis, Minnesota, with an operating lease in place through April 30, 2026. The lease provides for monthly rent, real estate taxes, and operating expenses. Rent expense is recorded on a straight-line basis over the lease term. In March 2023, the Company signed the fourth amendment to extend this lease through April 30, 2026. This amendment provides for monthly rent, real estate taxes and operating expenses.

 

In May 2018, the Company entered into a non-cancelable finance lease agreement for office equipment with a five-year term. The underlying assets are included in furniture and equipment. The lease contains a bargain purchase option at the end of the lease. The finance lease expired in May 2023 and the equipment was acquired for the bargain purchase option price.

 

When an implicit rate is not provided, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

 

Supplemental balance sheet information consisted of the following at December 31, 2024:

 

     
Operating Lease    
Right-of-use assets  $215,502 
      
Operating lease liability  $225,921 
Less: short term portion   (171,952)
Long term portion  $53,969 

  

Maturity analysis under lease agreements consisted of the following as of December 31, 2024:

 

   Operating Leases 
     
2025  $220,389 
2026   74,170 
Total minimum lease payments   294,559 
Less: Present value discount   (68,638)
Present value of net minimum lease payments  $225,921 

 

Weighted Average  Remaining Lease Term   Discount Rate 
Operating lease    1.3 years    10.5%

 

Lease costs for the period ended December 31:

 

    2024    2023 
           
Operating lease cost  $213,104   $212,238 
Finance lease cost:          
Amortization   -    2,411 
Interest   -    4 
Variable lease cost   111,246    101,957 
Lease costs  $324,350   $316,610 

 

Supplemental cash flow information related to leases for the period ended December 31:

 

   2024   2023 
Cash paid for amounts included in operating and finance leases:          
Operating cash outflow from operating leases  $324,783   $308,914 
Operating cash outflow from finance leases   -    4 
Financing cash outflow from finance leases   -    2,449 
Total cash paid for amounts included in operating and finance leases  $324,783   $311,367 

 

  

Clinical Research Studies

 

The Company enters into contracts in the normal course of business to conduct research and development programs internally and through third parties that include, among others, arrangements with vendors, consultants, CMOs, and CROs. The Company has a license agreement in place with Pfizer to research, develop, manufacture and commercialize gedatolisib. In conjunction with the license agreement, the Company completed a Phase 1b clinical trial – B2151009 related to gedatolisib. These patients subsequently transitioned to an Expanded Access study – CELC-G-001. Contracts related to the Expanded Access study are generally based on time and material. In addition, contracts related to the Company’s Phase 3 clinical studies (VIKTORIA-1 and VIKTORIA-2) and the Phase 1b/2 clinical trial (CELC-G-201) are generally cancelable with reasonable notice within 120 days and the Company’s obligations under these contracts are primarily based on services performed through termination dates plus certain cancelation charges, if any, as defined in each of the respective agreements. In addition, these agreements may, from time to time, be subjected to amendments as a result of any change orders executed by the parties. As of December 31, 2024, the Company had five material non-cancelable contractual commitments with respect to these arrangements, which totaled approximately $9.7 million.