Related party transactions

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Related party transactions

Note 11 - Related party transactions

In March 2014, the Company entered into a supply agreement with Fluidigm Corporation (“Fluidigm”) under which Fluidigm supplies the Company with its microfluidic test platform for use in manufacturing the Acuitas MDRO Gene Test. The Company’s CEO and Chairman of the Board of Directors is a director of Fluidigm. On July 12, 2015, the Company entered into a letter agreement (the “Fluidigm Agreement”) with Fluidigm to expand the companies’ existing relationship to include collaborating on the development of test kits and custom analytic instruments for identification, screening and surveillance testing of MDROs. The Fluidigm Agreement also expands the existing Supply Agreement between the Company and Fluidigm, and provides for expansion of the gene targets and organisms to be tested on the Company’s existing CLIA lab-based tests, the Acuitas MDRO Gene Test and the Acuitas Resistome Test, using Fluidigm technologies and products. Additionally, Fluidigm has agreed not to develop or directly collaborate with any third party to develop an FDA approved or CE-marked diagnostic test for the purpose of detecting resistance genes for identified MDROs if the Company meets certain minimum purchase commitments and other requirements. The initial term of the Fluidigm Agreement is five years. Both parties have the ability to extend the term for an additional five years. Under the expanded Supply Agreement, the term was extended until March 17, 2018, and the Company has the right to extend the term of the Supply Agreement for up to two additional three-year terms. The Company paid $0 and $160,089 related to these agreements in the three and nine months ended September 30, 2016, respectively. The Company paid $79,032 and $221,967 related to these agreements in the three and nine months ended September 30, 2015, respectively.

Under the agreements with Fluidigm, the Company had inventory purchases of $23,624 and $91,399 in the three and nine months ended September 30, 2016, respectively. The Company had inventory purchases of $87,127 and $212,925 related to these agreements in the three and nine months ended September 30, 2015, respectively.

In addition, the Company has several capital lease arrangements for laboratory equipment manufactured by Fluidigm. The Company paid $45,106 and $135,319 related to the leased equipment in the three and nine months ended September 30, 2016, respectively. The Company paid $45,106 and $74,812 related to the leased equipment in the three and nine months ended September 30, 2015, respectively.

In October 2016, the Company entered into an agreement in the ordinary course of its business with an affiliate of Merck Global Health Innovation Fund (“Merck GHI”), a principal stockholder of the Company.  Under the agreement, the Company will be required to expend up to $175,000 for the procurement of materials related to the activities contemplated by the agreement.