Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.22.1
Related Party Transactions
3 Months Ended
Mar. 31, 2022
Related Party Transactions [Abstract]  
Related Party Transactions

7. Related Party Transactions

 

Loan from Chief Executive Officer and Stockholder

 

The Company received advances from the stockholder of $150,000 during the three months ended March 31, 2021. The Company repaid amounts owed to the stockholder of $144,000 during the three months ended March 31, 2021. The Company repaid all amounts owed to the stockholder during the year ended December 31, 2021.

 

Common Stock Purchase Agreement and Service Agreement with Globavir

 

On July 1, 2017, the Company entered into a Common Stock Purchase Agreement (“Stock Agreement”) with Globavir. The Company’s principal stockholder is also the principal stockholder in Globavir. The Stock Agreement provided for the distribution of 62,181 shares of the Company’s common stock, valued at $0.013 per share, to Globavir’s stockholders as payment for Globavir’s services and shared costs rendered on behalf of the Company in 2017, which were issued in 2018.

 

On July 1, 2017, as amended on April 6, 2020, the Company entered into a Service Agreement with Globavir Biosciences, Inc. (“Globavir”), a related party (the “Service Agreement”). Globavir provides administrative and consulting services and shared office space and other costs in connection with the Company’s drug development programs. The initial amended term of the Service Agreement expired on December 31, 2020, and the agreement automatically renews for successive one-month periods after the initial termination date. Pursuant to the Service Agreement, the Company paid Globavir $50,000 per month through December 31, 2019 and $10,000 per month commencing on January 1, 2020. During the fourth quarter of 2021, after initially determining that future services under the Service Agreement were no longer required, the Company wrote off the $28,000 remaining prepaid balance due from Globavir as of December 31, 2021. During the three months ended March 31, 2022, after determining that although a shared office space is no longer utilized, consulting services continue to be provided, the Company plans to amend the Service Agreement to reflect the consulting services and a reduced service fee of $6,000 per month.