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Related Party Transactions
9 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Related Party Transactions

20. Related Party Transactions

 

For the three and nine months ended September 30, 2020, we incurred $0 and $0.1 million, respectively, of expenses for compensation for consulting services provided by a member of the Board of Directors. These expenses were paid in their entirety and as of September 30, 2020 and December 30, 2020, there was no outstanding balance due to this related party.

 

License and Supply Agreements

 

In August 2018, in conjunction with an investment made in our Series C Preferred Stock and Series C Preferred Stock Warrants by 4Life Research, LLC, an investor, we entered into a supply agreement with the investor. Under the terms of this agreement, we granted the investor an exclusive license to pursue development of dietary supplements using certain of our intellectual property (“IP”). The exclusive rights to the IP is for a term of five years from the commencement of sales of licensed product by the investor, with a deemed commencement date of January 1, 2023 if sales have not yet commenced, and is subject to annual minimum sales. The agreement may be renewed for additional five-year terms. If the investor fails to meet the annual minimum sales requirements, the investor may pay an additional fee to maintain exclusivity or have the investor’s license converted to non-exclusive rights. As part of this agreement, we will provide non-pharmaceutical product to the investor for development efforts and potential future production, and the investor is to pay royalties of 3% of incremental sales, as defined in the agreement.

 

For the three and nine months ended September 30, 2021, we sold $0.1 million and $0.4 million of product, respectively, under this agreement. We did not sell any products outside of this agreement. For the three and nine months ended September 30, 2021, the investor has made commercial sales of their products under the agreement which we recognized as royalty revenues of $47 thousand and $0.1 million, respectively.

 

For the nine months ended September 30, 2020, we sold $0.1 million of product under this agreement, as well as $0.1 million of product not under this agreement, and received $0.1 million in advance to be applied against future sales of product under this agreement. We recorded this advanced amount as deferred revenue as of September 30, 2020. The investor did not make sales of their products under the agreement, and as such we did not recognize any royalty revenues for the nine months ended September 30, 2020. For the three months ended September 30, 2020, we did not sell any product under this agreement, we sold $2 thousand of product not under this agreement, and there were no balances outstanding due to or from the investor.