Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies [Abstract]

8. Commitments and Contingencies

Operating Leases

Under the terms of month-to-month subleases, the Company pays monthly rent of $6,000 for its principal corporate offices in San Diego, California and monthly rent of approximately $4,000 for lab space in Brookvale, Australia. The Company leases lab space in Richmond, Virginia and lab and office space in Ljubljana, Slovenia under operating leases that expire in August 2018 and February 2019, respectively. The operating leases have extension provisions which may be elected at the option of the Company. Rent expense under the Company’s leases was $208,000 and $227,000 for the years ended December 31, 2017 and 2016, respectively.

Future minimum annual lease payments under the Company’s noncancelable operating leases as of December 31, 2017, are as follows:



	Operating
	Leases
2018	$	72,000
2019		7,000
Total minimum lease payments	$	79,000

Collaborative Agreements

In 2013, the Company entered into a Collaboration Agreement and a License Agreement with the University of Leicester (the “Leicester Agreements”). Under the Leicester Agreements, the Company provided payments to support research on the University of Leicester’s development of a bacteriophage therapeutic to resolve C. difficile infections and licensed related patents, materials and know-how. During the years ended December 31, 2017 and 2016, the Company recorded $79,000 and $166,000, respectively, in research and development expenses related to the Leicester Agreements. The Company terminated the Leicester Agreements effective in the third quarter of 2017 and the termination was not material to the Company.

Legal Proceedings

From time to time, the Company may be involved in disputes, including litigation, relating to claims arising out of operations in the normal course of business. Any of these claims could subject the Company to costly legal expenses and, while management generally believes that there is adequate insurance to cover many different types of liabilities, the Company’s insurance carriers may deny coverage or policy limits may be inadequate to fully satisfy any damage awards or settlements. If this were to happen, the payment of any such awards could have a material adverse effect on the consolidated results of operations and financial position. Additionally, any such claims, whether or not successful, could damage the Company’s reputation and business. The Company is currently not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated results of operations or financial position.