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Subsequent Events
6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
Subsequent Events

Note 17. Subsequent Events

MidCap Term Loan Escrow

The MidCap Term Loan (see Note 8) required that the Company deliver subordination documents with respect to the QNAH Convertible Note, or that the QNAH Convertible Note otherwise be converted or prepaid, on or before June 30, 2018, and required the Company to deposit approximately $3.3 million into an escrow account by July 15, 2018 if neither of such events occurred by such date. As neither of these events occurred prior to June 30, 2018, the Company deposited approximately $3.3 million into an escrow account on July 11, 2018. Such escrowed funds will be released to the Company upon subsequent delivery of the requisite subordination documents or conversion of the QNAH Convertible Note. If neither delivery of the subordination documents or conversion of the QNAH Convertible Note occurs, such funds will be applied by the escrow agent to repay in full the QNAH Convertible Note at maturity (or in connection with a prepayment at the direction of the Company), subject to (i) the Company having drawn MidCap Tranche 2, (ii) the Company having unrestricted cash and cash equivalents held in a deposit or securities account subject to a control agreement in favor of the Agent in a minimum amount of $20.0 million and (iii) there being no default under the MidCap Credit Facility.

 

Statement of Work No. Two Amendment

On August 8, 2018, the Company and QML entered into an amendment to SOW Two (see Note 16), effective as of July 2, 2018, which relates to a project for which HTG and QML are performing collaborative development services for what is expected to be a multi-stage project leading to the potential development and commercialization of an NGS-based companion diagnostic assay in support of one or more of BMS’ therapeutic development and commercialization programs. Initial-phase investigational use only (“IUO”) development activities under SOW Two have been completed and the amendment of SOW Two relates to the next phase, which includes the use of the IUO assay developed in the initial-phase in a retrospective clinical trial. Successful completion of the next phase activities could lead to the use of the assay in subsequent clinical trials and potential companion diagnostic development.

 

The next phase activities expected to be performed by the Company and QML under the first amendment to SOW Two are expected to be completed within the third quarter of 2018. QML will pay the Company approximately $0.5 million for work to be performed under this amendment, including project management, clinical affairs support and oversight of clinical trial by the Company and its subcontractors. In addition, the Company and QML will share in any net profits (as determined under the Governing Agreement) generated by this next phase work.