Subsequent Events |
9 Months Ended |
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Sep. 30, 2021 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events Stock option grant
On October 4, 2021, the Company granted 1,600,000 stock options to the Company's Chief Financial Officer. The options have an exercise price of $0.09 per share and 10% of the options vest on the grant date with the remainder vesting in semi-annual installments over four years. In the event of a change of control of the Company (as defined in the award documents), the options shall become vested in full.
Exclusive Sponsored Research Agreement
On October 11, 2021, the Company entered into an Exclusive Sponsored Research Agreement (the “ESRA”) with EHBE to fund certain research and development programs which are of mutual interest to both the Company and EHBE. The Company
will have the right to use all data, products, and information, including intellectual property which are generated in the performance of the research under each and all projects funded by the Company pursuant to the ESRA, and EHBE assigns and agrees to assign, to the Company all rights to any intellectual property created or reduced-to-practice under, or as a part of, a project funded by the Company pursuant to the ESRA.
The Company has agreed to pay to EHBE a royalty based on any and all licensing revenue or other consideration paid to the Company by a third-party licensee, assignee or purchaser of intellectual property rights created under the ESRA. In addition, upon a change of control transaction the Company has agreed to pay an amount equal to the royalty percentage multiplied by the fair value of the intellectual property created under the ESRA. Pursuant to the ESRA, EHBE will provide a budget to be approved by the Company for each project, and the Company will make payments in accordance with the approved budget and pay an annual retainer to EHBE of $200,000 per year.
The initial term of the agreement is one year, with automatic renewal for successive one-year terms unless either party terminates upon 60 days' prior written notice to the other party pursuant to the ESRA.
Termination of UM 5070 License Agreement On November 9, 2021, the Company provided its 60 day notice of termination to UM to terminate the UM 5070 license agreement effective January 8, 2022.
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