ACCRUED EXPENSES AND OTHER LIABILITIES

6 Months Ended

Jun. 30, 2014

ACCRUED EXPENSES AND OTHER LIABILITIES

ACCRUED EXPENSES AND OTHER LIABILITIES

NOTE 4 — ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consist of the following:

	June 30, 2014		December 31, 2013
Research and development costs	$	350,784	$	58,117
Professional fees (1)	210,000		595,215
Expenses due to related parties	177,230		126,910
Interest payable	114,429		24,276
Vacation pay	26,090		5,690
Bonus (2)	486,000		—
ProteoSys milestone payable (3)	682,250		—
Primomed research funding (4)	236,294		—
Consulting and other costs	55,388		5,031
	$	2,338,465	$	815,239

(1) Included in accrued professional fees at June 30, 2014 and December 31, 2013 are $0.2 million and $0.4 million, respectively, incurred in connection with the preparation of a public offering of the Company’s common stock.

(2) Under the terms of certain employment agreements, the Company is obligated to pay $0.5 million in bonuses upon the completion of an IPO. The Company’s registration statement was declared effective on June 30, 2014 and thus, the bonuses became probable. The portion accrued as of June 30, 2014 represents the amortization of the bonus expense from the date of the employment agreements through June 30, 2014.

(3) Under the terms of the acquisition agreement for Mind-NRG, the Company is obligated to make a €0.5 million (or $0.7 million, as converted) milestone payment to ProteoSys by the earlier of January 1, 2015, or upon completion of an IPO, or equity financing of at least $5.0 million.

(4) Under the terms of a research agreement with Primomed, the Company received grant funds that will be used to offset certain costs under the MIN-301 development program.