12. Related Party Transactions
|9 Months Ended|
Sep. 30, 2015
|Related Party Transactions [Abstract]|
|Related Party Transactions||
In June 2015, the Company issued a promissory note for $100,000 to Pharmsynthez with a maturity date of July 31, 2015 and a stated interest rate of 8.00% per annum. In July 2015, the Company repaid the promissory note and accrued interest in accordance with the terms of the promissory note.
In May 2011, the Company received a short term unsecured loan facility of up to $1.7 million from SynBio, a related party, of which $395,000 is outstanding as of September 30, 2015 and December 31, 2014, respectively (the SynBio Loan). The SynBio Loan had an interest rate of 8.04% per annum as of the date of grant, with interest payable upon repayment, which was to be seven months after the closing date of the loan. During 2012, the SynBio Loan matured and it was agreed by both parties that the loan could be called due with full repayment of the outstanding principal including accrued interest upon future agreement by both parties. It was also agreed that as of July 1, 2012, no further interest on the outstanding loan balance would be accrued. The SynBio Loan is recorded in current liabilities as of September 30, 2015. The SynBio Loan does not bear interest at the prevailing market rate for instruments with similar characteristics. In July 2015, the Company entered into a written deferral arrangement whereby SynBio agreed to defer all collections efforts or any default on the SynBio Loan until the earlier of January 31, 2016 or the Companys completion of a $7 million financing.
The Company has various research, development, license and supply agreements with Baxalta, Serum Institute, SynBio and Pharmsynthez. Baxalta is a related party of the Company, with a share ownership in the Company of approximately 8.7% and 8.9% as of September 30, 2015 and 2014, respectively. Serum Institute is a related party of the Company, with a share ownership in the Company of approximately 9.2% and 9.4% as of September 30, 2015 and 2014, respectively. SynBio is an affiliate of the Company, with a share ownership in the Company of approximately 41.4% and 40.3% as of September 30, 2015 and 2014, respectively. Pharmsynthez is a related party of SynBio. In addition, two of the Companys directors are also in leadership positions at SynBio and Pharmsynthez.
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