Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Note 16. Related Party Transactions

The Company’s related parties include MCC, Blue Horse Labs, Inc. (“BHL”), and Limagrain. As of December 31, 2015, BHL is deemed a related party as a result of its existing contractual relationship with the Company and because a Director of the Company also served as the Treasurer of BHL and as an Officer and Director of MCC, the Company’s controlling stockholder. Upon the resignation of the Director in November 2016, BHL remains an affiliate of the Company as of December 31, 2016.

Transactions with related parties are reflected in the consolidated financial statements under amounts due to related parties and notes payable to related party. Outlined below are details of agreements between the Company and its related parties:

A term note was executed with MCC in July 2012 for $8.0 million (see Note 9). This note was repaid in full in April 2015.

Under a license agreement executed in 2003 and amended in 2009, BHL receives a single­digit royalty from the Company when revenue has been collected on product sales or for license payments from third parties that involve certain intellectual property developed under research funding from BHL. Royalty fees due to BHL were $30,000 and $19,000 as of December 31, 2016 and December 31, 2015, respectively, and are included in the Consolidated Balance Sheets as amounts due to related parties.

License agreements were executed with Limagrain, a stockholder of the Company, in September 2009 and February 2011. The agreements license certain of the Company’s traits to Limagrain and include up­front license fees, annual license fees, milestone fees and value­sharing payments. Limagrain was subject to Item 404 of Regulation S-K – Transactions with Related Person, Promoters and Certain Control Person until the IPO in May 2015, at which time its ownership percentage fell below the 5% threshold. The Company recognized $91,000 of revenue under these agreements for the year ended December 31, 2015.