Related Party Transaction

6 Months Ended

Jun. 30, 2023

Related Party Transaction

Related Party Transaction

Note 10. Related Party Transaction

On April 27, 2023, the Company entered into an exclusive option agreement with Silk Road to complete its due diligence assessment. The option agreement grants the Company an exclusive option to purchase all assets and rights, including intellectual property and regulatory documents, related to Silk Road’s Pentoxifylline product candidate, a non-biological anti-TNF-alpha inhibitor, for the treatment of mucocutaneous ulcers in patient’s suffering from Behcet’s Disease and expires on August 25, 2023. In consideration for the option, the Company paid $50,000 of cash and issued 31,646 shares of common stock with a value of $50,000. The consideration paid for the option was recorded as general and administrative expense during the three and six months ended June 30, 2023 on the accompanying consolidated statements of operations. The Company is continuing due diligence activities including potential discussion with the FDA on the appropriate Phase 2/3 trial design to advance PTX in BD to allow the Company to determine whether to exercise the option to acquire the PTX asset or allow the option to expire. Certain directors of the Company have an ownership interest and are part of the executive management team of Silk Road.