Related Party Transactions

3 Months Ended

Mar. 31, 2017

8.	Related Party Transactions

In July 2014, the Company issued Caribou Therapeutics Holdco, LLC, a wholly-owned subsidiary of Caribou Biosciences, Inc. (“Caribou”), 8,110,599 Junior Preferred Units. As a result of this and related transactions, Caribou owned 15.5% of the Company’s voting interests as of March 31, 2017.

The Company recognized research and development expense of $0.4 million during the three months ended March 31, 2016 and an insignificant amount during the three months ended March 31, 2017, related to license and service agreements entered into with Caribou. In addition, the Company recognized general and administrative expense of $0.2 million during the three months ended March 31, 2016 and an insignificant amount during the three months ended March 31, 2017, related to the Company’s obligation to pay 30.0% of Caribou’s patent prosecution, filing and maintenance costs under its intellectual property license agreement with Caribou.

In connection with its entry into the collaboration and license agreement and related equity transactions with Novartis, the Company issued Novartis 4,761,905 Class A-1 Preferred Units and 2,666,666 Class A-2 Preferred Units. In August 2015, Novartis acquired 761,905 shares of the Company’s Series B Preferred Stock, and in May 2016, Novartis acquired 277,777 shares of the Company’s common stock in a private placement transaction concurrent with the Company’s IPO. As a result of these and subsequent transactions, Novartis collectively owned 15.7% of the Company’s voting interests as of March 31, 2017. Refer to Note 5, Collaborations, for additional information regarding this collaboration agreement.

The Company recognized collaboration revenue of $2.2 million and $1.8 million in the three months ended March 31, 2017 and 2016, respectively, in the consolidated statements of operations related to this agreement. As of March 31, 2017 and December 31, 2016, the Company had recorded accounts receivable of $1.0 million and $6.0 million and deferred revenue of $10.4 million and $11.6 million, respectively, related to this collaboration.