Related Party Transactions

6 Months Ended

Jun. 30, 2017

Related Party Transactions

Related Party Transactions

12. Related Party Transactions

The Company has a license agreement with Incept to use and develop certain patent rights that it entered into in 2007 (see Note 11).  Incept and certain owners of Incept are shareholders of the Company.  In addition, certain employees of the Company are shareholders of Incept.  The Company’s Executive Chairman of the Board of Directors and former President and Chief Executive Officer (“CEO”) is a general partner of Incept. 

In April 2014, the Company granted 28,437 shares of restricted common stock to its then-CEO, which grant was in lieu of $250 of the then-CEO’s 2015 base salary.  During 2015, the Company identified that it did not appropriately adjust the base salary to reflect this reduction.  As a result, the Company paid the full base salary for 2015.  Upon discovery of the error, the then-CEO promptly repaid the full $250 to the Company on April 1, 2016.  The Company recorded a reduction to payroll expense in the first quarter of 2016.  The effect of this error on the statement of operations was considered immaterial for all related periods. 

In March 2016, the Company entered into a Master Services Agreement with Axtria, Inc.  (“Axtria”).  In March 2016, the Company entered into a statement of work totaling approximately $104 under which Axtria would provide certain sales and marketing analytics to the Company.  In February 2017, the Company entered into a separate statement of work totaling approximately $1,400 under which Axtria would provide data warehouse implementation, operations and maintenance support services to the Company.  Jaswinder Chadha, co-founder and CEO of Axtria, is also a member of the Company’s Board of Directors and a cousin to the Company’s Executive Chairman of the Board of Directors and former President and CEO.  In the six months ended June 30, 2017 and 2016, payments paid to Axtria were $584 under the 2017 statement of work and $32 under the 2016 statement of work, respectively.  In the three months ended June 30, 2017 and 2016, the Company has expensed to sales and marketing $362 under the 2017 statement of work and $31 under the 2016 statement of work for sales and marketing analytics, respectively.  In the six months ended June 30, 2017 and 2016, the Company has expensed to sales and marketing $946 under the 2017 statement of work and $32 under the 2016 statement of work for sales and marketing analytics, respectively.  As of June 30, 2017 and 2016, there are were $204 and $0 due in accounts payable to Axtria.  On July 20, 2017, the Company terminated the 2017 and 2016 statements of work with Axtria.

Since 2014, the Company has engaged Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) to provide legal services to the Company, including with respect to general corporate, finance, securities law, regulatory and licensing matters.  The Company’s former Chief Medical Officer, Jonathan H. Talamo, M.D., who served as Chief Medical Officer from July 2016 until his resignation in June 2017, is married to a partner at WilmerHale, who has not participated in providing legal services to the Company.  The Company incurred fees for legal services rendered by WilmerHale of $205 and $284 for the three months ended June 30, 2017 and 2016, respectively. The Company incurred fees for legal services rendered by WilmerHale of $489 and $479 for the six months ended June 30, 2017 and 2016, respectively.  As of June 30, 2017 and 2016, there was $132 and $46, respectively, recorded in accrued expenses for WilmerHale.