COMMITMENTS AND CONTINGENCIES
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3 Months Ended |
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Dec. 31, 2014
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES |
NOTE 9 COMMITMENTS AND CONTINGENCIES
Legal Proceedings The Company may become involved in certain legal proceedings and claims which arise in the normal course of business. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the Companys results of operations, prospects, cash flows, financial position and brand. To the best knowledge of the Companys management, at December 31, 2014, there are no legal proceedings which the Company believes will have a material adverse effect on its business, results of operations, cash flows or financial condition.
In June 2012, the Company was named, along with other parties, as a defendant in a putative class action lawsuit brought, as amended, by Alan Schmidt, individually, and on behalf of Genaera Corporation and the Genaera Liquidating Trust. We purchased biotechnology assets from the Trust in 2009. On August 12, 2013, the court dismissed each of the plaintiffs claims against the Company. The litigation has ended with respect to claims against the Company, and management believes that it is unlikely that the litigation continuing against other parties will have a material adverse impact on the Companys financial condition.
Contingent Stock Consideration On May 30, 2014, the Company completed the acquisition of certain assets of SKS Ocular, LLC (SKS Parent), and SKS Ocular 1, LLC (SKS 1 and SKS Parent referred to herein as SKS), including licenses, patents and contracts relating to micro-fabrication polymer-based sustained delivery platforms related to ocular therapeutics and dry age-related macular degeneration animal models, together with biomarkers to support such models.
The purchase price consisted of: (a) Cash in the amount of $3,500,000; (b) 1,194,862 shares of the Companys common stock (valued at $10,180,224 based on the trading price on May 30, 2014 of the Companys common stock) and (c) an additional 1,493,577 shares (the contingent shares) that will be issued contingent to achievement of certain milestones. This contingent consideration has been recorded as a liability of the Company and is reviewed by management for probability and likelihood of the milestones being achieved at each reporting period. The fair value of the liability is adjusted in each reporting period according to managements assessment (see Note 2). |