Pursuant to the Company’s asset purchase agreement with NuvoGen Research, LLC (“NuvoGen”), as amended, the Company is obligated to pay NuvoGen annually the greater of $400,000 or 6% of annual revenue until the NuvoGen obligation is paid in full.

In addition to the fixed quarterly payment of $100,000, there was no revenue-based amount payable as of March 31, 2022, compared with $72,624 of revenue-based payments as of December 31, 2021. There have been no modifications to the terms and conditions of the 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 29, 2022.

Remaining minimum payments to be made in 2022 and in the first quarter of 2023 as reflected in the table below include an estimate of additional revenue-based payments to be made in these quarters, estimated using actual revenue generated in the same quarter in the prior year. Remaining minimum payments 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 revenue in 2022 and the first quarter of 2023 varies from the same periods in prior years and revenue in the second quarter of 2023 and later periods exceeds $400,000.

The remaining minimum payments to be made to NuvoGen as of March 31, 2022 are as follows for each fiscal year:

2022	$	375,677
2023		472,624
2024		400,000
2025		400,000
2026		400,000
2027 and beyond		2,161,168
Total NuvoGen obligation payments		4,209,469
Plus interest accretion		64,105
Total NuvoGen obligation, net	$	4,273,574

The Company has recorded the obligation at the estimated present value of the future payments using a discount rate of 2.5%, which represents the Company’s estimate of its effective borrowing rate for similar obligations. The unamortized interest accretion was $(64,105) and $(67,088) as of March 31, 2022 and December 31, 2021, respectively. Discount accreted during the three months ended March 31, 2022 and 2021 was $(2,983) and $(3,106), respectively, and was included in interest expense in the accompanying condensed consolidated statements of operations.