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Subsequent Events
6 Months Ended
Jun. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events

11. Subsequent Events

We evaluated all events or transactions that occurred after June 30, 2012 up through the date we issued these financial statements.

In July 2012, we borrowed the principal sum of $150,000 from Robert Gipson. The funds borrowed are secured by a demand promissory note issued to Mr. Gipson that bears interest at the rate of 7% per annum.

On July 31, 2012 the Company announced that it entered into an agreement with Navidea Biopharmaceuticals, Inc. (NYSE MKT: NAVB, “Navidea”) to license, [ 123I]-E-IACFT Injection (CFT), also called Altropane ®, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson’s disease and movement disorders.

In January 2012, Alseres and Navidea executed an Option Agreement pursuant to which Navidea paid Alseres the non-refundable sum of $500,000 in exchange for the exclusive option to license the CFT program, to conduct its final due diligence review of the program and to prepare the paperwork necessary for the execution of the license.

Under the terms of the license agreement, Alseres granted Navidea an exclusive, worldwide sublicense to research, develop, and commercialize CFT. In connection with the execution of this agreement, Navidea made a one-time sublicense execution payment to Alseres equal to (i) One Hundred Seventy-Five Thousand Dollars ($175,000) and (ii) issued Alseres 300,000 shares of NAVB common stock.

The license agreement also provides for contingent milestone payments of up to $2.9 million, $2.5 million of which will principally occur at the time of product registration or upon commercial sales, and the issuance of up to an additional 1.15 million shares of Navidea stock, 950,000 shares of which are issuable at the time of product registration or upon commercial sales. In addition, the license terms anticipate royalties on yearly net sales of the approved product which are consistent with industry-standard terms and certain license extension fees, payable in cash and shares of common stock, in the event certain milestones are not met.

Navidea agreed to file with the Securities and Exchange Commission and use its best commercial efforts to have declared effective within 90 days a registration statement that would permit Alseres to resell the common stock issued as initial or milestone payments under the license agreement.

Under the license agreement, Navidea will use its best commercial efforts to develop and launch Altropane in accordance with an agreed to development plan for the product. Alseres has no continuing cost obligations related to Altropane. There can be no assurances that Altropane will receive regulatory approval for sale in any jurisdiction.

On July 31, 2012, Robert Gipson, Thomas Gipson, Arthur Koenig and Ingalls & Snyder Value Partners LLP, all lenders to the Company under a Convertible Note Purchase Agreement originally executed in 2007 elected to exercise their existing rights under the Convertible Note Purchase Agreement to receive repayment of a total of $16 million in principal outstanding under the promissory notes purchased under the Convertible Note Purchase Agreement at a rate of 8% of the future Net Sales of the Company’s Altropane product. In a related transaction executed on July 31, 2012, Arthur Koenig and Ingalls & Snyder Value Partners LLP agreed to waive their right to receive a percentage of Altropane sales in the future in repayment of the $5,827,587 in debt remaining after their portion of the agreement mentioned above.