Related Party Transactions |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2023 | |||
| Related Party Transactions [Abstract] | |||
| Related Party Transactions |
The Company has entered into various research, development, license and supply agreements with Serum Institute and Pharmsynthez, each a related party whose relationship has not materially changed from that disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 22, 2023, as amended on April 28, 2023.
During the fourth quarter of 2019, the Company entered into a loan agreement with Pharmsynthez (the “Pharmsynthez Loan”), pursuant to which the Company advanced Pharmsynthez an aggregate principal amount of up to $500,000 to be used for the development of a specific product under the Company’s Co-Development Agreement with Pharmsynthez. The Pharmsynthez Loan had an initial term of 15-months and accrued interest at a rate of 10% per annum. The Pharmsynthez Loan is guaranteed by all of the operating subsidiaries of Pharmsynthez, including SynBio and AS Kevelt, and is secured by all of the common and preferred stock of the Company owned by Pharmsynthez and SynBio.
The Pharmsynthez Loan has been amended at various times primarily to extend the principal repayment schedule and maturity date. The Pharmsynthez Loan, as amended, currently has a maturity date of May 31, 2023 and requires the repayment of the remaining principal amount, plus interest, in seven (7) monthly installments from November 30, 2022 through May 31, 2023 as well as certain other terms and conditions. While Pharmsynthez has made certain payments in accordance with the repayment schedule, all principal and interest payments required to date under the Pharmsynthez Loan, as amended, have not been made. As a result, the Company has classified the loan receivable as long-term as of March 31, 2023 and December 31, 2022. The Company assessed the collectability of the loan and determined that the U.S.-based collateral held by the Company, consisting of all of the common and preferred stock of the Company owned by Pharmsynthez and SynBio, was adequate to support the repayment of the outstanding principal balance. As of March 31, 2023 and December 31, 2022, approximately $0.2 million and $0.4 million, respectively, was included in other assets on the condensed consolidated balance sheet. The Company did not recognize any interest income related to this loan during the three months ended March 31, 2023. The Company recognized approximately $9,000 of interest income related to this loan during the three months ended March 31, 2022. |