Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

The Company has commitments of approximately $450,000 as of June 30, 2019 for several licensing agreements with consultants and universities. Additionally, the Company has collaboration and license agreements, which upon clinical or commercialization success, may require the payment of milestones of up to $7.9 million and/or royalties up to 6% of net sales of covered products, if and when achieved. However, there can be no assurance that clinical or commercialization success will occur.

The Company currently leases approximately 6,200 square feet of office space at 29 Emmons Drive, Suite B-10 in Princeton, New Jersey pursuant to a lease that was amended in October 2017 and expires in October 2020. This office space currently serves as the Company's corporate headquarters. The rent for the first 12 months was $11,367 per month, or approximately $22.00 per square foot. The rent increased to $11,625 per month, or approximately $22.50 per square foot, for the 12 months beginning November 1, 2018 and will increase beginning November 1, 2019 to $11,883 per month, or approximately $23.00 per square foot for the remainder of the lease.

On September 3, 2014, the Company entered into an asset purchase agreement with Hy Biopharma, Inc. ("Hy Biopharma") pursuant to which the Company acquired certain intangible assets, properties and rights of Hy Biopharma related to the development of Hy BioPharma's synthetic hypericin product. As consideration for the assets acquired, the Company paid $275,000 in cash and issued 184,912 shares of common stock with a fair value based on the Company's stock price on the date of grant of $3,750,000. These amounts were charged to research and development expense during the third quarter of 2014 as the assets will be used in the Company's research and development activities and do not have alternative future use pursuant to generally accepted accounting principles in the U.S. Provided all future success-oriented milestones are attained, the Company will be required to make additional payments of up to $10.0 million, if and when achieved. Payments will be payable in restricted securities of the Company provided they do not exceed 19.9% ownership of the Company's outstanding stock. As of June 30, 2019, no milestone or royalty payments have been paid or accrued.

In February 2007, the Company's Board of Directors authorized the issuance of 5,000 shares of common stock to Dr. Schaber immediately prior to the completion of a transaction, or series or a combination of related transactions, negotiated by its Board of Directors whereby, directly or indirectly, a majority of its capital stock or a majority of its assets are transferred from the Company and/or its stockholders to a third party. Dr. Schaber's amended employment agreement includes the Company's obligation to issue such shares if such event occurs.

In May 2019, the Company entered into a four-month service agreement with a third party vendor, which requires the Company to issue at pre-determined intervals an aggregate 100,000 restricted shares of common stock as partial compensation for the services provided. In accordance with the agreement, the Company issued 50,000 shares of common stock with a fair value of $0.83 per share on May 15, 2019 and 25,000 shares of common stock with a fair value of $0.98 on July 15, 2019. The Company will issue the remaining 25,000 shares of common stock on August 15, 2019. The service agreement may be terminated at any time upon written notice.

As a result of the above agreements as of June 30, 2019, the Company has future contractual obligations over the next five years as follows:

Year	Research and Development		Property and Other Leases		Total
July 1 through December 31, 2019	$	50,000	$	74,538	$	124,538
2020		100,000		127,374		227,374
2021		100,000		6,408		106,408
2022		100,000		-		100,000
2023		100,000		-		100,000
Total	$	450,000	$	208,320	$	658,320