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 less than $0.1 million and approximately $0.2 million were payable as of September 30, 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 Part II, Item 8, Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 25, 2020.

Remaining minimum payments to be made in 2020 include $6,626 of revenue-based payments payable as of September 30, 2020 and the fourth quarter 2020 minimum payment. Minimum payments to be made in 2021 include an estimate of additional revenue-based payments to be made in the first, second and third quarters of 2021 relating to revenue generated in the fourth quarter of 2020 and in the first and second quarters of 2021, estimated using revenue generated in the same quarters in 2019 and 2020. 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 2021 and beyond exceeds $400,000.

The remaining minimum payments to be made to NuvoGen as of September 30, 2020 are as follows for each fiscal year:

2020	$	106,626
2021		639,323
2022		400,000
2023		400,000
2024		400,000
2025 and beyond		3,073,428
Total NuvoGen obligation payments		5,019,377
Plus interest accretion		82,540
Total NuvoGen obligation, net	$	5,101,917

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 $(82,540) and $(92,311) at September 30, 2020 and December 31, 2019, respectively. Discount accreted during the three and nine months ended September 30, 2020 was $(3,115) and $(9,771), respectively, compared with $(3,790) and $(10,273) for the three and nine months ended September 30, 2019, 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 Part II, Item 8, Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 25, 2020.