Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

12.

Commitments and Contingencies

Technology License – The Company has negotiated exclusive licenses from MD Anderson 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 and an annual license maintenance fee. The annual license maintenance fee attributable to the License Agreement totaling $0.1 million is included in Current Liabilities as of December 31, 2016. As of December 31, 2015, the annual license maintenance fee attributable to the License Agreement totaling $0.1 million was included in Current Liabilities.

Operating Lease- In April 2014, the Company entered into a lease agreement for office space, which it occupied as of August 2014. The remaining lease payments due under this lease as of December 31, 2016 are $0.2 million.

In April 2016, the Company entered into a three-year lease agreement for lab space located in Bellaire, Texas. The term of lease began on May 1, 2016 and terminates on April 30, 2019 and will require Bio-Path to pay $2,500 per month over the term of the lease. The remaining lease payments due under this lease as of December 31, 2016 are $0.1 million.

A summary of future payments under operating leases as of December 31, 2016:

For the Year
Ending
December 31,
(in thousands)
2017	$	114
2018		116
2019		61
Total	$	291

Drug Supplier Project Plan - Bio-Path has a project plan agreement with a producer of the Company’s drug product for the manufacture and delivery of one batch of prexigebersen, which is expected to be delivered to the Company in the second quarter 2017. As of December 31, 2016, the remaining commitment for this batch requires the Company to pay $0.1 million when the drug product from the batch is completed and delivered. In addition, the Company has entered into an agreement with its drug substance provider having one batch of material remaining to be delivered for use in the final drug product with a remaining commitment totaling $0.1 million as of December 31, 2016. In September 2016, the Company entered into an agreement with its drug substance provider for four batches of material, one of which was cancelled. The three batches of material are now expected to be completed in the second quarter of 2017 and have a remaining commitment as of December 31, 2016 of $0.5 million. The amounts paid for manufacture of the Company’s Grb2 drug substance and prexigebersen that have not been expensed totals $0.4 million and is carried on the balance sheet as of December 31, 2016 as Prepaid Drug Product for Testing (See Note 3). Commitments to the drug substance and drug product manufacturers for manufacturing development of Bio-Path’s second drug product candidate total $0.1 million. The balance of drug supplier commitments totaling $0.2 million is for assay development and manufacturing and supplier development.