Related Party Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

(9) Related Party Transactions

In April 2020, the Company entered into a consulting agreement (the 2020 Consulting Agreement) with Globeways Holdings Limited, or Globeways. Globeways and entities affiliated with F2 Ventures beneficially own in the aggregate greater than five percent of the Company’s outstanding units and Globeways is beneficially owned by a member of the Company’s board of directors. Pursuant to the 2020 Consulting Agreement, the board member provides leadership and advice regarding the Company’s scientific, clinical, product development and related activities and operations. Pursuant to the 2020 Consulting Agreement, the LLC pays Globeways a consulting fee at a monthly rate of $25,000. As the sole beneficial owner of Globeways, this board member receives all of the compensation paid to Globeways under the 2020 Consulting Agreement.

For each of the three months and nine months ended September 30, 2020, the Company incurred less than $0.1 million and $0.2 million in costs related to this agreement, respectively. The Company did not incur any expenses relating to the Globeways Agreement for the three months ended September 30, 2021 as the agreement expired as of March 31, 2021. For the nine months ended September 30, 2021, the Company incurred less than $0.1 million in costs related to the 2020 Consulting Agreement.

Royalty Transfer Agreements

Between October 2019 and May 2020, each of the Asset Subsidiaries entered into royalty transfer agreements with MPM Oncology Charitable Foundation, Inc. and UBS Optimus Foundation (together, the Foundations). Under each of these respective agreements, each Foundation is entitled to receive a royalty equal to 0.5% (1.0% in aggregate) of all global net sales of any products developed by the applicable subsidiary, subject to limitations after patent expirations and on intellectual property developed after a change of control. The Company has deemed these royalty transfer agreements to be freestanding financial instruments that should be accounted for at fair value. Management of the Company has concluded that these instruments had no value at the inception of the agreements and at December 31, 2020 and September 30, 2021.

Given the early-stage nature of the underlying technologies and inherent technical, regulatory and competitive risks associated with achieving approval and commercialization, the Company ascribed no value to the royalty transfer agreements as of December 31, 2020 and September 30, 2021. The Company currently does not have any applicable net sales from its products and as a result, has paid no royalties under these obligation as of December 31, 2020 and September 30, 2021 nor has the Company accrued any liability as of December 31, 2020 and September 30, 2021. The Company will monitor these instruments for changes in fair value at each reporting date.