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Other Non-Current Liabilities
9 Months Ended
Sep. 30, 2017
Other Liabilities Disclosure [Abstract]  
Other Non-Current Liabilities

9. Other Non-current Liabilities

 

In August 2015, Banque Publique d’Investissement (“BPI France”) granted Annapurna a €0.5 million interest free conditional advance. Payments are scheduled in equal quarterly amounts of €25,000 from September 30, 2017 to June 30, 2022. This payment schedule will be modified if the Company receives revenue from license or product sales before advances are paid in full. The Company calculated 7% imputed interest expense on these advances that was recorded as a discount at the issuance date. The discount is amortized as an interest expense over the life of the advances. As of September 30, 2017, the carrying value of this interest-free conditional advance, which approximates its fair value, was $0.4 million, of which $0.3 million is recorded within other non-current liabilities and $0.1 million within accrued expenses and other current liabilities in the Company’s condensed consolidated balance sheets. Interest expense for this interest-free conditional advance was immaterial for the three and nine months ended September 30, 2017.

 

In July 2016, the Company entered into a sponsored research agreement with The Alpha-1 Project, Inc. (“TAP”) to fund the Company’s A1AT research activities of up to $0.3 million, of which $0.1 million was received during the year ended December 31, 2016 (“TAP financing arrangement”). The Company may repay up to 4.5 times the received amount if and when certain product approval and sales milestones are achieved. As of September 30, 2017, the estimated fair value of the TAP financing arrangement was $0.1 million, which was recorded within other noncurrent liabilities in the Company’s condensed consolidated balance sheets.