Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.10.0.1
Commitments and Contingencies
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Note 9 - Commitments and Contingencies

a) Capital Lease Obligations

 

In 2015, the Company entered into an equipment capital lease to purchase three Tecan machines (automated liquid handling robots) for €550,454 Euros. As of September 30, 2018, the balance payable was $162,357.

 

In 2016, the Company entered into a real estate capital lease with ING Asset Finance Belgium S.A. (“ING”) to purchase a property located in Belgium for €1.12 million Euros. As of September 30, 2018, the balance payable was $719,348.

 

The following is a schedule showing the future minimum lease payments under capital leases by years and the present value of the minimum payments as of September 30, 2018.

  

2018- remaining   $ 39,517  
2019   $ 158,066  
2020   $ 108,679  
2021   $ 62,450  
2022   $ 62,449  
Greater than 5 years   $ 585,445  
Total   $ 1,016,606  
Less: Amount representing interest   $ (134,901 )
         
Present value of minimum lease payments   $ 881,705  

 

b) Operating Lease Obligations

 

The Company also leases premises and facilities under operating leases with terms ranging from 12 months to 60 months. As of September 30, 2018, the annual non-cancelable operating lease payments on these leases are as follows:

 

2018- remaining   $ 55,987  
2019   $ 65,722  
2020   $ 52,864  
2021   $ 14,315  
Total Operating Lease Obligations   $ 188,888  

 

c) Grants Repayable

 

In 2010, the Company entered into an agreement with the Walloon Region government in Belgium for a colorectal cancer research grant for €1.05 million Euros. Per the terms of the agreement, €314,406 Euros of the grant is to be repaid. As of September 30, 2018, the grant balance repayable was $182,758.

 

On July 2, 2018, the Company entered into an agreement with the Walloon Region government in Belgium for a colorectal cancer research grant for €605,000 Euros. Per the terms of the agreement, €181,500 Euros of the grant is to be repaid over 12 years commencing in 2020. As of September 30, 2018, the grant balance repayable was $175,610.

 

As of September 30, 2018, the balance repayable was $358,368 and the annual payments remaining were as follows:

 

2018- remaining   $ --  
2019   $ 40,637  
2020   $ 54,685  
2021   $ 51,673  
2022   $ 48,880  
Greater than 5 years   $ 162,493  
Total Grants Repayable   $ 358,368  

 

d) Long-Term Debt

 

In 2016, the Company entered into a 7-year loan agreement with Namur Invest for €440,000 Euros with a fixed interest rate of 4.85%. As of September 30, 2018, the principal balance payable was $430,596.

 

In 2016, the Company entered into a 15-year loan agreement with ING for €270,000 Euros with a fixed interest rate of 2.62%. As of September 30, 2018, the principal balance payable was $283,578.

 

In 2017, the Company entered into a 4-year loan agreement with Namur Invest for €350,000 Euros with a fixed interest rate of 4.00%. As of September 30, 2018, the principal balance payable was $333,282.

 

In 2017, the Company entered into a 7-year loan agreement with SOFINEX for up to €1 million Euros with a fixed interest rate of 4.50%. As of September 30, 2018, €500,000 Euros has been drawn down under this agreement and the principal balance payable was $580,530.

 

On June 27, 2018, the Company entered into a 4-year loan agreement with Namur Innovation and Growth for €500,000 Euros with fixed interest rate of 4.00%. As of September 30, 2018, the principal balance payable was $580,531.

 

As of September 30, 2018, the total balance for long-term debt was $2,208,517 and the payments remaining were as follows:

 

 

2018- remaining   $ 84,417  
2019   $ 491,364  
2020   $ 698,181  
2021   $ 625,288  
2022   $ 271,653  
Greater than 5 years   $ 323,200  
Total   $ 2,494,103  
Less: Amount representing interest   $ (285,586 )
Total Long-Term Debt   $ 2,208,517  

  

e) Collaborative Agreement Obligations

 

In 2015, the Company entered into a research sponsorship agreement with DKFZ, in Germany for a 3-year period for €338,984 Euros. As of September 30, 2018, $87,079 is still to be paid by the Company under this agreement.

 

In 2016, the Company entered into a research co-operation agreement with DKFZ, in Germany for a 5-year period for €400,000 Euros. As of September 30, 2018, $232,212 is still to be paid by the Company under this agreement.

 

In 2016, the Company entered into a collaborative research agreement with Munich University, in Germany for a 3-year period for €360,000 Euros. As of September 30, 2018, $246,145 is still to be paid by the Company under this agreement.

 

In 2016, the Company entered into a phase one clinical research agreement with Hvidovre Hospital, University of Copenhagen in Denmark for a 2-year period for DKK 15 million Danish Kroner. As of September 30, 2018, $333,309 is still to be paid by the Company under this agreement.

 

In 2017, the Company entered into a clinical study research agreement with the Regents of the University of Michigan (the “University of Michigan”) for a 3-year period for up to $3 million. As of September 30, 2018, up to $2.0 million is still to be paid by the Company under this agreement.

 

On July 9, 2018, the Company entered into a research collaboration agreement with the University of Taiwan for a 3-year period for a cost to the Company of up to $2.55 million payable over such period. As of September 30, 2018, $2.42 million is still to be paid by the Company under this agreement.

 

As of September 30, 2018, the total amount to be paid for future research and collaboration commitments was $5.32 million and the annual payments remaining were as follows:

 

2018- remaining   $ 1,065,521  
2019   $ 2,399,450  
2020   $ 963,774  
2021   $ 892,500  
Total Collaborative Agreement Obligations   $ 5,321,245  

 

f) Legal Proceedings

 

There are no legal proceedings which the Company believes will have a material adverse effect on its financial position.