NOTE 8 – RELATED PARTY TRANSACTIONS

LFB Biotechnologies

On January 30, 2012, we entered into an exclusive license agreement with LFB Biotechnologies, GTC Biotherapeutics and LFB/GTC LLC, all wholly-owned subsidiaries of LFB Group, relating to the development of ublituximab (the “LFB License Agreement”).

Under the terms of the LFB License Agreement, we utilize LFB Group for certain development and manufacturing services. We did not incur any such expenses during the three months ended March 31, 2016 as compared to $161,000 in expenses for these services during the three months ended March 31, 2015, which have been included in other research and development expenses in the accompanying condensed consolidated statements of operations. As of March 31, 2016 and December 31, 2015, we had approximately $0.1 million and $2.1 million, respectively, recorded in accounts payable related to the LFB License Agreement. In conjunction with the development and manufacturing services discussed above, certain agreements between us and LFB Group require payments in advance of services performed or goods delivered. Accordingly, as of March 31, 2016 and December 31, 2015, we recorded approximately $4.4 million and $3.0 million, respectively, in prepaid research and development for such advance payments.

Other Parties

In March 2014, we entered into a shared services agreement (the “Opus Shared Services Agreement”) with Opus Point Partners Management, LLC (“Opus”) in which the parties agreed to share the costs of a rented facility and certain other services. Our Executive Chairman and Interim Chief Executive Officer is a Managing Member of Opus. During the three months ended March 31, 2016, we incurred expenses of approximately $0.1 million, principally for rent, related to this agreement. As of March 31, 2016, we had approximately $0.1 million recorded in accounts payable related to this Opus Shared Services Agreement.

In October 2014, we entered into an agreement (the “Office Agreement”) with Fortress Biotech, Inc. (“Fortress”), to occupy approximately 45% of the 24,000 square feet of New York City office space leased by Fortress, which is now our corporate headquarters. The Office Agreement requires us to pay our respective share of the average annual rent and other costs of the 15-year lease. We approximate an average annual rental obligation of $1.1 million under the Office Agreement. We began to occupy this new space in April 2016, with rental payments beginning in the third quarter of 2016. Mr. Weiss, our Executive Chairman and Interim CEO, is also Executive Vice Chairman of Fortress.

In connection with the Office Agreement, we paid approximately $0.1 million in advance rent, which is recorded in other current assets in the accompanying condensed consolidated balance sheets as of March 31. 2016 and December 31, 2015. During the three months ended March 31, 2016, we agreed to pay Fortress $1.2 million upfront prepaid rent for use of the assets, which have been allocated to us at the 45% rate mentioned above. The allocated build-out costs have been recorded in Prepaid Rent and will be amortized over the 15-year term of the Office Agreement. After an initial commitment period of three (3) years, Fortress will assess actual office space utilization annually and if our utilization differs from the amount we have been billed, we will either receive credits or be assessed incremental utilization charges. As of March 31. 2016, we had approximately $1.0 million recorded in accounts payable related to the upfront prepaid rent. Also in connection with this lease, in October 2014 we pledged $0.6 million to secure a line of credit as a security deposit for the Office Agreement, which has been recorded as restricted cash in the accompanying condensed consolidated balance sheets.

In July 2015, we entered into a Shared Services Agreement (the “Shared Services Agreement”) with Fortress to share the cost of certain services such as facilities use, personnel costs and other overhead and administrative costs. This Shared Services Agreement requires us to pay our respective share of services utilized. In connection with the Shared Services Agreement, we incurred expenses of approximately $0.1 million for shared services for the three months ended March 31, 2016.

In March 2015, we entered into a Global Collaboration Agreement (the “Collaboration”) with Checkpoint Therapeutics, Inc. (“Checkpoint”), a subsidiary of Fortress, for the development and commercialization of Checkpoint’s anti-PD-L1 and anti-GITR antibody research programs. As of March 31, 2016, we had approximately $0.1 million recorded in accounts payable related to certain shared costs under the collaboration. Mr. Weiss is also the Executive Chairman of Checkpoint.