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Related Party Transactions
6 Months Ended
Jun. 30, 2017
Related Party Transactions  
Related Party Transactions

10. Related Party Transactions

 

In August 2013, the Company entered into a sublease agreement with NeXeption, Inc. ("NeXeption"), which was subsequently amended and restated in March 2014 and further amended in December 2014.  In August 2015, pursuant to an Assignment and Assumption Agreement, NeXeption, Inc. assigned all interests, rights, duties and obligations under the sublease to NST Consulting, LLC, a wholly-owned subsidiary of NST, LLC.  Following the Assignment and Assumption Agreement, the sublease was further amended in August 2015, February 2016 and October 2016.  Mr. Stephen Tullman, the chairman of the Company’s board of directors, was an executive officer of NeXeption and is also the manager of NST Consulting, LLC and NST, LLC. Total payments made under the sublease during the three months ended June 30, 2017 and 2016 were $50 and $56, respectively, and during the six months ended June 30, 2017 and 2016 were $124 and $115, respectively. 

 

In February 2014, the Company entered into a services agreement with NST, LLC (the “NST Services Agreement”), pursuant to which NST, LLC provided certain pharmaceutical development, management and other administrative services to the Company. Under the same agreement, the Company also provided services to another company under common control with the Company and NST, LLC and was reimbursed by NST, LLC for those services. In addition to Mr. Tullman’s role as manager of NST, LLC, several of the Company’s executive officers are members of NST, LLC. 

 

The NST Services Agreement was amended in December 2014 pursuant to which NST, LLC assigned all interests, rights, duties and obligations under the NST Services Agreement to NST Consulting, LLC. Under the NST Services Agreement, as amended, NST Consulting, LLC provides services to the Company and the Company provides services to another company under common control with the Company and NST Consulting, LLC. The NST Services Agreement was further amended in August 2015, November 2015, January 2016, December 2016 and May 2017 to adjust the amount of services the Company is obligated to provide to NST Consulting, LLC and the amount of services NST Consulting, LLC is obligated to provide to the Company. The Company may offset any payments owed by the Company to NST Consulting, LLC against payments that are owed by NST Consulting, LLC to the Company for the provision of personnel, including consultants, to the Company. 

 

During the three and six months ended June 30, 2017 and 2016, amounts included in the consolidated statement of operations and comprehensive loss for the NST Services Agreement are summarized in the following table:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30, 

 

June 30, 

 

 

    

2017

    

2016

    

2017

    

2016

 

Services provided by NST Consulting, LLC

 

$

56

 

$

79

 

$

112

 

$

158

 

Services provided to NST Consulting, LLC

 

 

(7)

 

 

(15)

 

 

(18)

 

 

(30)

 

General and administrative expense, net

 

$

49

 

$

64

 

$

94

 

$

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services provided by NST Consulting, LLC

 

$

 —

 

$

60

 

$

 —

 

$

121

 

Services provided to NST Consulting, LLC

 

 

 —

 

 

(21)

 

 

 —

 

 

(42)

 

Research and development expense, net

 

$

 —

 

$

39

 

$

 —

 

$

79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services provided by NST Consulting, LLC

 

$

56

 

$

139

 

$

112

 

$

279

 

Services provided to NST Consulting, LLC

 

 

(7)

 

 

(36)

 

 

(18)

 

 

(72)

 

Total, net

 

$

49

 

$

103

 

$

94

 

$

207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net payments made to NST

 

$

47

 

$

117

 

$

182

 

$

175

 

 

The Company had $4 and $91 payable to NST Consulting, LLC under the NST Services Agreement as of June 30, 2017 and December 31, 2016, respectively.