Related Party Transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

8.  Related Party Transactions

MDB Capital Group, LLC (“MDB”) provides investment banking, executive recruiting and intellectual property management services to the Company. The Company’s Chairman, Robert Levande, is a Senior Managing Director of MDB.

During the three and six-month periods ended June 30, 2016, the Company incurred non-financing related expenses charged by MDB of $45,000 and $100,000, respectively, for services rendered with respect to intellectual property related services.

In connection with the initial public offering, the underwriting syndicate lead by MDB received $1,800,000 in underwriting discounts, $160,000 in unaccountable expense reimbursement and warrants valued in aggregate of $1,443,000.

Gary Schuman, the Chief Financial Officer of MDB served as the acting Chief Financial Officer of the Company and was compensated at a monthly rate of $4,000 from November 1, 2014 to December 31, 2015. Mr. Schuman’s compensation of $12,000 and $24,000 is reflected in general and administrative expenses for the three and six-month periods ended June 30, 2015.  

At June 30, 2016 and December 31, 2015, $15,000 and $58,000, respectively, was included in accounts payable to MDB for patent related services and their expenses incurred relating to the Company’s planned IPO, which were recorded as offering costs in shareholders’ equity and deferred offering costs, respectively.

Information with respect to payments under the Company’s Sponsored Research Agreement with ODURF, a greater-than 10% shareholder, is described at Note 7.