|
Commitments and Contingencies
|
9 Months Ended |
|---|---|
|
Sep. 30, 2014
|
|
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies |
The Company leases temporary headquarters facilities under month-to-month operating lease agreements. There are no future minimum commitments in excess of one year for the operating lease in place as of September 30, 2014. Monthly rent expense under this lease is $2,259, commencing June 23, 2014. Rent expense for the nine months ended September 30, 2014 was $6,844 and for the nine month period ended September 30, 2013 was $0.
UM Lease Agreement
On September 1, 2014, the Company signed an operating lease for laboratory and office space at the Innovation Hub, Insight Park located on the University of Mississippi campus. The lease term commences on October 1, 2014 and expires on December 31, 2017. There are annual escalating rent provisions and two months of free rent in the agreement. The total cash payments over the life of the lease will be divided by the total number of months in the lease period and the average rent will charged to expense each month during the lease period. The monthly amount to be charged to rent expense will be approximately $9,000.
Independent Contractor Agreements
The Company has entered into independent contractor agreements with individuals that are operating in the capacity of our management team, or that are serving in an advisory role. These agreements were effective at various dates commencing July 17, 2012, and can be terminated upon 30 days' notice. Independent contractor expense for the nine months ended September 30, 2014 and 2013 was $353,000 and $90,000, respectively. Two of these contractors accounted for 15% and 11% respectively of our total expenditures for the nine months ended September 30, 2014 and one accounted for 100% of our total expenditures for the nine months ended September 30, 2013.
Legal Matters
General Litigation and Disputes
From time to time, in the normal course of our operations, we may be a party to litigation and other dispute matters and claims. Currently Nemus is not party to any litigation, dispute matters or claims. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and our view of these matters may change in the future as the litigation and events related thereto unfold. An unfavorable outcome to any legal matter, if material, could have a materially adverse effect on our operations or our financial position, liquidity or results of operations.
Like other companies in the pharmaceutical industry, we are subject to extensive regulation by national, state and local government agencies in the United States. As a result, interaction with government agencies occurs in the normal course of our operations. It is possible that criminal charges and substantial fines and/or civil penalties or damages could result from any government investigation or proceeding. As of September 30, 2014, the Company had no current proceedings or inquiries.
|