Significant Alliances and Related Parties

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Significant Alliances and Related Parties

9. Significant Alliances and Related Parties

Roswell Park Cancer Institute

The Company has entered into several agreements with Roswell Park Cancer Institute, or RPCI, including: various sponsored research agreements, an exclusive license agreement and clinical trial agreements for the conduct of the Phase 1 Entolimod oncology study and the Phase 1 CBL0137 intravenous administration study. Additionally, the Company’s Chief Scientific Officer is the Senior Vice President of Basic Research at RPCI.

The Company recognized $0, $0 and $2,317,218 of revenue from RPCI during the years ended December 31, 2013, 2012 and 2011, respectively. The Company incurred $2,323,078, $3,876,073 and $2,689,503 in expense to RPCI related to research grants and agreements for the years ended December 31, 2013, 2012 and 2011, respectively. The Company had $172,295 and $900,300 included in accounts payable owed to RPCI at December 31, 2013 and 2012, respectively. In addition, the Company had $491,397 and $553,644 in accrued expenses payable to RPCI at December 31, 2013 and 2012, respectively.

Cleveland Clinic Foundation

CBLI has entered into an exclusive license agreement, or the License, with the Cleveland Clinic Foundation, or CCF, pursuant to which CBLI was granted an exclusive license to CCF’s research base underlying our therapeutic platform and certain product candidate in development by Panacela. CBLI has the primary responsibility to fund all newly developed patents; however, CCF retains ownership of those patents covered by the agreement. CBLI also has agreed to use commercially diligent efforts to bring one or more products to market as soon as practical, consistent with sound and reasonable business practices and judgments. In consideration for the CCF License, CBLI agreed to issue CCF common stock and make certain milestone, royalty and sublicense royalty payments. Milestone payments, which may be credited against future royalties, amounted to $0, $100,000 and $100,000 for the years ended December 31, 2013, 2012 and 2011, respectively. No royalty or sublicense royalty payments were made to CCF in the years ended December 31, 2013, 2012 and 2011, respectively.

The Company also recognized $7,516, $4,804 and $2,558 as research and development expense to CCF for the years ended December 31, 2013, 2012 and 2011, respectively. The Company did not have any liabilities to CCF at December 31, 2013 and 2012.

Consultants

CBLI has entered into a consulting agreement with our Chief Scientific Officer, Dr. Andrei Gudkov. The Company incurred $202,843, $200,695 and $186,224 for consulting services in the years ending December 31, 2013, 2012 and 2011, respectively. The Company incurred $0, $0 and $24,476 in bonuses for the years ending December 31, 2013, 2012 and 2011, respectively. The Company incurred $164,661, $32,659 and $109,137 in non-cash, stock based compensation expense for the years ending December 31, 2013, 2012 and 2011, respectively.

The Company had $62,059 and $28,245 for consulting services included in accrued expenses at December 31, 2013 and 2012, respectively. The Company had $66,692 and $24,476 included in accrued bonuses at December 31, 2013 and 2012, respectively.

Dr. Gudkov has equity interests in other entities, not including BBL, that are unaffiliated with the Company. The Company recognized $29,607, $0 and $0 as research and development expense to these entities for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013 and 2012, there were no amounts owed to these entities. During the years ended December 31, 2013 and 2012, the Company recognized other income from these entities of $217,347 and $407,395, respectively. The Company held no accounts receivable from these entities as of December 31, 2013 and 2012.

Buffalo BioLabs

Pursuant to the MSA that was executed with BBL (see Note 8, “Restructuring”), the Company recognized $419,284 as research and development expense for the year ended December 31, 2013, and included $111,356 in accounts payable at December 31, 2013. We also received $64,362 and $6,500 from BBL for sublease and other income for the years ended December 31, 2013 and 2012, respectively.