15.Commitments and Contingencies

a)The Company has contracted with various vendors for research and development services, with terms that require payments over the term of the agreements, usually ranging from two to 36 months. The costs to be incurred are estimated and are subject to revision. As of December 31, 2017, the total estimated cost to complete these agreements was approximately $11,110,000.    All of these agreements may be terminated by either party upon appropriate notice as stipulated in the respective agreements.

b)On June 22, 2009, the Company entered into a License Agreement with Korea Research Institute of Chemical Technology (“KRICT”) to acquire the rights to all intellectual property related to quinoxaline-piperazine derivatives that were synthesized under a Joint Research Agreement.  The initial license fee was $100,000, all of which was paid as of December 31, 2009.  The agreement with KRICT calls for a one-time milestone payment of $1,000,000 within 30 days after the first achievement of marketing approval of the first commercial product arising out of or in connection with the use of KRICT’s intellectual properties.  As of December 31, 2017, the milestone has not occurred.

c)Office Space Lease

On June 5, 2009, the Company entered into a commercial lease agreement for 5,466 square feet of office space in Rockville, Maryland.  The lease was amended on June 7, 2013 to extend the term until June 30, 2019. 

On July 26, 2014, the lease was amended to add 1,727 square feet of office space, beginning on September 1, 2014 and ending on August 31, 2015. The lease of additional space was subsequently renewed until June 30, 2019. Under the lease agreement, the Company pays its allocable portion of real estate taxes and common area operating charges. 

Rent paid under the Company’s lease during the years ended December 31, 2017, 2016, and 2015 was $206,667,  $205,324, and $202,529, respectively.

Prior Laboratory Lease

On August 26, 2014, the Company signed a one-year renewal to use laboratory space commencing on July 1, 2014.  The lease required monthly rental payments of $4,554.  Rent paid under the Company’s lease during the year ended December 31, 2015 was $27,324. 

Current Laboratory Lease

On April 20, 2015, the Company signed a five-year lease agreement for 2,552 square feet of laboratory space commencing on July 1, 2015 and ending on June 30, 2020.  Under the lease agreement, the Company pays its allocable portion of real estate taxes and common area operating charges. Rent paid under this lease during the years ended December 31, 2017, 2016 and 2015 was $64,032,  $62,167 and $30,624, respectively.

Future rental payments over the next five years for all leases are as follows:





d)The Company has established a 401(k) plan for its employees.  The Company has elected to match 100% of the first 3% of an employee’s compensation plus 50% of an additional 2% of the employee’s deferral. Expense related to this matching contribution aggregated to $123,145,  $113,204, and $121,519, for the years ended December 31,  2017, 2016 and 2015 respectively.

e)In July 2013, the Company entered into an exclusive license agreement with the University of Maryland, Baltimore for a novel drug delivery platform, Nano-Polymer Drug Conjugate Systems.  The agreement requires the Company to make payments to the University of Maryland if any products from the licensed delivery platform achieve development milestones.  As of December 31, 2017, no development milestones have occurred.

f)  In October 2013, the Company signed an exclusive license agreement with the Ohio State Innovation Foundation, for a novel oligonucleotide drug delivery platform, Lipid-Coated Albumin Nanoparticle.  The agreement requires the Company to make payments to the Ohio State Innovation Foundation or any products from the licensed delivery platform achieve development milestones.  As of December 31, 2017, no development milestones have occurred.