Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

10.  Related Party Transactions

MDB Capital Group, LLC (“MDB”) provided investment banking, executive recruiting and intellectual property management services to the Company. Furthermore, provisions of the Company’s investment banking agreement with MDB survive the June 2016 termination of the agreement for a period of two years and MDB retains significant rights under the 2016 IPO underwriting agreement with respect to the Company’s future financing alternatives for up to five years. The Company’s Chairman, Robert Levande, is a Senior Managing Director of MDB.

In connection with the Company’s 2016 IPO (Note 1), the underwriting syndicate led by MDB received $1.8 million in underwriting discounts, $0.2 million in unaccountable expense reimbursements and warrants valued in the aggregate of $1.4 million.

In addition, during the period from May 19, 2014 (inception) to December 31, 2014 (Note 7), MDB received cash placement agent fees of $0.8 million and the Company issued warrants to purchase 299,625 shares of common stock for a consideration of $1,000, exercisable for seven years at $2.67 per share, to MDB Capital Group, LLC and its designees.

During the year ended December 31, 2016, the Company incurred non-financing related expenses charged by MDB of $100,000 for services rendered with respect to intellectual property related services. Similarly, during the year ended December 31, 2015, the Company incurred expenses charged by MDB comprised of: $49,000 for services rendered with respect to executive search activities related to the hiring of the Company’s Chief Executive Officer and the appointment of one director, $42,000 for offering related expenses and $26,000 for intellectual property related services.

Gary Schuman, the Chief Financial Officer of MDB, was also 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, reflecting an aggregate charge to general and administrative expenses of $48,000 and $8,000 for the year ended December 31, 2015 and the period from May 19, 2014 (inception) through December 31, 2014, respectively.

At December 31, 2016, accounts payable and accrued expenses did not include any amounts payable to MDB. At December 31, 2015, included in accounts payable and accrued expenses is an amount of $58,000 payable to MDB for their expenses incurred relating to the Company’s planned IPO, which were recorded as deferred offering costs, and patent related services.