SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2017

SUBSEQUENT EVENT

SUBSEQUENT EVENT

(10) SUBSEQUENT EVENT

Effective April 25, 2017, the Company and MDx entered into a Royalty Buy-out Agreement (the “Agreement”), which terminated the Company’s License Agreement with MDx dated July 26, 2010, as previously amended May 6, 2011 (the “License Agreement”). Pursuant to the Agreement, the Company agreed to pay MDx a one-time fee of $8.0 million in exchange for an assignment of certain patents covered by the License Agreement and the elimination of all ongoing royalties and other payments under the License Agreement. Also in the Agreement is a mutual release, which includes all amounts previously accrued to MDx under the License Agreement. Concurrently with entering into the Agreement, the Company entered into a Patent Purchase Agreement with MDx under which it agreed to pay MDx $7.0 million in exchange for the assignment of certain other patent rights which were not covered by the License Agreement.