Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Technology License – Related Party – The Company has negotiated exclusive licenses from the MD Anderson Cancer Center to develop drug delivery technology for antisense and siRNA drug products. These licenses require, among other things, the Company to reimburse MD Anderson for ongoing patent expense. Related party accrued license payments attributable to the Technology License totaling $50,000 are included in Current Liabilities as of September 30, 2012. Related party accrued expense totaling $39,000 as of September 30, 2012 represent hospital costs for the clinical trial and are not related to the Technology License. As of September 30, 2012, the Company estimates reimbursable past patent expenses will total approximately $75,000 for the antisense license. The Company will be required to pay when invoiced the past patent expenses at the rate of $25,000 per quarter. In addition, the Company has decided to discontinue development of its siRNA technology, and consequently, does not anticipate incurring any significant additional exposure for future siRNA patent expense (See Note 1).

Drug Supplier Project Plan - In August of 2012, Bio-Path entered into a project plan agreement with the Company’s drug substance manufacturer for delivery of drug substance for a batch of final drug product scheduled to be manufactured in the fourth quarter 2012. In September of 2012, the Company entered into a project plan for the delivery of final drug product incorporating the drug substance for expected delivery in the fourth quarter of 2012. Taken together, these two project plans will require the Company to pay approximately $340,000 once manufacturing has been completed and drug product delivered to the Company. Of this amount, $79,500 has been paid for by the Company, which is carried on the Balance Sheet as Prepaid Drug Product for Testing. This amount substantially represents the entire financial commitments to the drug substance and the drug product manufacturers for the new batch of drug material.