Pursuant to the Company’s asset purchase agreement with NuvoGen Research, LLC (“NuvoGen”), as amended, the Company is obligated to pay NuvoGen the greater of $400,000 or 6% of annual revenue until the obligation is paid in full. In addition to fixed quarterly payments of $100,000, revenue-based payments of $33,528 and $187,997 were payable as of March 31, 2020 and December 31, 2019, respectively. There have been no significant modifications to the terms and conditions of the Company’s NuvoGen obligation since the disclosures made in the Company’s Annual Report on Form 10-K, filed with the SEC on March 25, 2020.

Minimum payments to be made in 2020 include $33,528 of revenue-based payments payable as of March 31, 2020 and an estimate of additional revenue-based payments to be made in 2020 relating to actual revenue generated in the second, third and fourth quarters of 2020, estimated using actual revenue generated in the same quarters in 2019. Minimum payments for the remaining periods include only the minimum quarterly payments to be made in each period. Actual payments could vary from what is shown in the table, to the extent that 6% of the Company’s annual revenue in 2020 and beyond exceeds $400,000.

The remaining minimum payments to be made to NuvoGen as of March 31, 2020 are as follows for each fiscal year:

2020		1,093,592
2021		400,000
2022		400,000
2023		400,000
2024		400,000
2025 and beyond		2,577,110
Total NuvoGen obligation payments		5,270,702
Plus interest accretion		88,881
Total NuvoGen obligation, net	$	5,359,583

The Company has recorded the obligation at the estimated present value of the future payments using a discount rate of 2.5%, the Company’s estimate of its effective borrowing rate for similar obligations. The unamortized debt discount was $(88,881) and $(92,311) at March 31, 2020 and December 31, 2019, respectively. Discount accreted during the three months ended March 31, 2020 and 2019 was $(3,430) and $(3,414), respectively.

There have been no significant modifications or financial events relating to the development agreement entered into by the Company with Illumina, Inc. since the disclosures made in the Company’s Annual Report on Form 10-K, filed with the SEC on March 25, 2020.