RESEARCH AGREEMENT OBLIGATIONS

9 Months Ended

Sep. 30, 2017

Note 6: Research Agreement OBLIGATIONS

Crucell Holland B. V. (“Crucell”) – Research License and Option Agreement

In 2003 and further amended in 2008, the Company acquired a research license and option agreement from Crucell Holland B.V. for use of an adenovirus technology. The Company has not made use of the technology in its current work and has not asked for nor received any work product from Crucell. Crucell was acquired by Johnson and Johnson in 2010.

As of December 31, 2016, the Company had accrued $0.5 million under the amended agreement.

Upon further third-party Netherlands legal review and analysis of the agreement undertaken during the year, it was concluded that based upon Dutch law, the statute of limitations has run out on the obligation, and a legal opinion received by the Company confirms the amounts are not currently owed. As such, as of September 30, 2017, the Company was no longer obligated to make the payments under the agreement and therefore, the Company recorded a debt extinguishment gain of $0.5 million and reduced the liability amount owed to $0 during the nine-month period ended September 30, 2017.