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Related Party Transactions
6 Months Ended
Jun. 30, 2013
Related Party Transactions  
Related Party Transactions

10. Related Party Transactions

 

Assignment Agreement with the Company’s Chief Executive Officer

 

On June 15, 2012, the Company entered into an assignment agreement with Dr. Bergstein. Pursuant to the assignment agreement, as amended on November 7, 2012, effective as of January 28, 2013.  Dr. Bergstein  assigned to the Company all of his right, title and interest in certain proprietary patent rights and related technology in exchange for $2.0 million in cash payable if the Company achieved a market capitalization of at least $200 million for a prescribed period, which it did in June 2013.  The Company accounted for this transaction as an asset acquisition because it did not acquire any processes or activities in addition to the assigned rights and technology. None of the assigned patent rights and related technology has alternative future uses, nor have they reached a stage of technological feasibility.  The Company recorded the entire $2.0 million purchase price to research and development expense. The assignment agreement does not contain any vesting or rescission/refund provisions.