15. Related Party Transactions
|12 Months Ended|
Dec. 31, 2016
|Related Party Transactions [Abstract]|
|Related Party Transactions||
In May 2011, the Company received a short term unsecured loan facility of up to $1.7 million from SynBio (the “SynBio Loan”), an affiliate of the Company, of which $0 and $395,000 was outstanding as of December 31, 2016 and 2015, respectively. In connection with the APA, the Company made a series of payments during the first two quarters of 2016 totalling $323,640 to creditors of Kevelt. Pursuant to the APA, such payments are considered direct offsets to the loan with SynBio.
In December 2016, the Company entered into an agreement with SynBio, Pharmsynthez, and Kevelt which settled all amounts owed on the SynBio Loan, Kevelt services provided to Xenetic in connection with the XBIO-101 Phase 2 project, and the purchase of drug candidate supply from Kevelt sufficient to meet the needs of the XBIO-101 Phase 2 clinical trial. Pursuant to this agreement, the Company transferred $620,387 to the counter parties.
Shire has a share ownership of approximately 4.7% of the total issued common stock of the Company as of December 31, 2016 and was formerly a related party of the Company in 2015 with share ownership of approximately 8.0% of the total issued common stock of the Company. In December 2016, the Company earned a $3 million milestone payment from Shire related to the advancement of the Phase 1/2 clinical trial of SHP656.
The Company has entered into various research, development, license and supply agreements with Shire, SynBio, Serum and Pharmsynthez, each a related party whose relationship, ownership, and nature of transactions is disclosed within other sections of these footnotes.
During the years ended December 31, 2016 and 2015, the Company received research and consulting services from a director of Pharmsynthez, a significant shareholder of the Company. The total amount of services received was $131,644 and $72,594 for the years ended December 31, 2016 and 2015, respectively, with $31,247 and $35,582 included in accounts payable and accrued expenses on the consolidated balance sheets as of December 31, 2016 and 2015, respectively.
During the year ended December 31, 2015, the Company also received consulting services from a firm owned by a non-employee director of the Company. The total amount of services received and paid was $4,000 for the year ended December 31, 2015. No such services were provided to the Company in 2016; as such, no amounts are included in accounts payable on the consolidated balance sheets as of December 31, 2016 and 2015.
Please refer to Note 4, Significant Strategic Drug Development Collaborations – Related Parties, Note 8, Hybrid Debt Instruments, and Note 11, Stockholder’s Equity, for details on arrangements with collaboration partners and non-employee directors that are also related parties.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef