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Related Party Transactions
 9 Months Ended
Sep. 30, 2023
Related Party Transactions  
Related Party Transactions

14. Related Party Transactions

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As more fully described in Note 5 to the Company’s consolidated financial statements for the year ended December 31, 2022, included in the Annual Report on Form 10-K, the Company holds a 49.7% ownership in Angel Pharmaceuticals and, in connection with intellectual property licensing agreements between the Company and Angel Pharmaceuticals, the Company provides operational support and clinical drug supplies to Angel Pharmaceuticals. Third-party and internal personnel costs incurred by the Company are billed to Angel Pharmaceuticals in the period incurred and recorded as an offset to expenses. During the nine months ended September 30, 2023 and 2022, the Company billed Angel for $0.0 million and approximately $140,000, respectively, in internal personnel costs and approximately $59,000 and $631,000, respectively, in third-party party costs.

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In addition to the provision of clinical supplies to Angel Pharmaceuticals, Angel Pharmaceuticals may provide clinical supplies or research services to the Company on an as needed basis. These costs are recorded as research and development expense. During the three and nine months ended September 30, 2023, Angel Pharmaceuticals billed the Company for approximately $9,000 and $225,000 million in research services, respectively.

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In August 2021, the Company entered into an agreement to sublease 7,585 square feet of its office and laboratory space in Burlingame, California to Angel Pharmaceuticals. Pursuant to the sublease, rent is due monthly and is subject to scheduled annual increases and Angel Pharmaceuticals is responsible for certain operating expenses and taxes throughout the life of the sublease. The sublease expired in January 2023. Sublease income is recognized on a straight-line basis as other income in our consolidated statements of operations. During the nine months ended September 30, 2023 and 2022, the Company recognized approximately $0.1 million and $0.3 million of sublease income, respectively.

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In July 2021, Linda S. Grais, M.D., J.D., a member of the Company’s Board of Directors, was appointed as a non-executive member of the Board of Directors of ICON plc (“ICON”), effective upon completion of ICON’s acquisition of PRA Health Sciences, Inc. ICON is a clinical research organization and provides services to support the Company’s clinical trials. During the nine months ended September 30, 2023 and 2022, the Company recorded approximately $0.2 million and $0.2 million, respectively, in clinical trial expenses under its agreements with ICON.