Note 6 - Significant Alliances and Related Parties

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

6.

Significant Alliances and Related Parties

Roswell Park Cancer Institute

The Company has entered into several agreements with Roswell Park Cancer Institute ("

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, Dr. Andrei Gudkov, is the Senior Vice President of Basic Research at RPCI.

The Company incurred

$67,551

and

$200,455

in expense to RPCI related to research grants and agreements for the years ended

December 

31,

 

2019

and

2018

, respectively. The Company had

$0

and

$0

included in accounts payable owed to RPCI at

December 

31,

 

2019

and

2018

, respectively. In addition, the Company had

$0

and

$0

in accrued expenses payable to RPCI at

December 

31,

 

2019

and

2018

, respectively.

The Cleveland Clinic

CBLI entered into an exclusive license agreement, or the License, with The Cleveland Clinic ("

CCF

"), pursuant to which CBLI was granted an exclusive license to The Cleveland Clinic’s research base underlying our therapeutic platform and certain product candidates 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 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 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

for the years ended

December 

31,

 

2019

and

2018

.

No

royalty or sublicense royalty payments were made to CCF during the

two

-year period ended

December 

31,

2019

.

The Company also recognized

$30,710

and

$41,484

as research and development expense to CCF for the years ended

December 

31,

 

2019

and

2018

, respectively. The Company had

$0

and

$0

included in accrued expenses payable at

December 

31,

 

2019

and

2018

, respectively.

Buffalo BioLabs and Incuron

Our Chief Scientific Officer, Dr. Andrei Gudkov, has business relationships with several entities with which we transact business, the most significant of which is Buffalo BioLabs ("

BBL

"), where Dr. Gudkov was a founder and currently serves as its Principal Scientific Adviser. Pursuant to a master services agreement we have with BBL, the Company recognized

$124

and

$454,937

as research and development expense to BBL for the years ended

December 

31,

 

2019

and

2018

, respectively, and

included

$0

and

$28,000

in accounts payable to BBL at

December 

31,

 

2019

and

2018

, respectively. We also recognized

$23,106

and

$46,212

from BBL for sublease and other income for the years ended

December 

31,

 

2019

and

2018

, respectively. Pursuant to our real estate sublease and equipment lease with BBL, we had gross and net accounts receivable of

$6,285

and

$6,285

from BBL at

December 

31,

2019

, respectively, and gross and net accounts receivables of

$218,300

and

$16,149

from BBL at

December 31,

2018

, respectively.

Dr. Gudkov is also an uncompensated member of the board of directors for Incuron. Pursuant to master service and development agreements we have with Incuron, the Company performs various research, business development, clinical advisory, and management services. We recognized revenue of

$394,544

and

$610,907

from Incuron for the years ended

December 

31,

 

2019

and

2018

, respectively. In addition, we also recognized

$5,107

and

$2,268

from Incuron for sublease and other income for the years ended

December 

31,

 

2019

and

2018

, respectively. Pursuant to these agreements, we had gross accounts receivable of

$99,285

and

$33,316

at

December 

31,

 

2019

and

2018

, respectively.

IP Bayramov Roman

Our wholly owned subsidiary's Chief Executive Officer also provides accounting services through a separate legal entity to Panacela Labs, LLC. Professional fee expense to this firm, IP Bayramov Roman, amounted to

$18,462

and

$19,219

for the years ended

December 

31,

 

2019

and

2018

, respectively.

Genome Protection

GPI incurred 

$196,975

and

$82,333

in consultant expenses with members of the Company's management team for the years ended

December 

31,

 

2019

and

2018,

respectively. The Company recognized

$7,409

and

$1,725

in sublease and other income from GPI for the year ended

December 31,

2019

 and

2018,

respectively. We had gross accounts receivable of

$3,700

and

$675

at

December 

31,

 

2019

and

2018,

respectively.