Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.20.2
Related Party Transactions
3 Months Ended
Jun. 30, 2020
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 12 — RELATED PARTY TRANSACTIONS

 

In October 2017, Sekisui purchased all outstanding shares of Series D and Series D-1 preferred stock from Gen-Probe Incorporated. As such, Sekisui became a related party as of October 2017. These Series D and Series D-1 preferred stock shares were converted into 1,980,233 shares of the Company’s common stock in connection with the reverse recapitalization transaction in May 2020. The following are transactions made between the Company and Sekisui as of and for the three months ended June 30, 2020 and 2019.

 

  The Company sells products and provides collaborative research & development (“R&D”) services to Sekisui. As of June 30, 2020 and March 31, 2020, the Company had a receivable from Sekisui of approximately $55,000 and $290,000, respectively. The Company recorded product sales of approximately $420,000 and $950,000 for the three months ended June 30, 2020 and 2019, respectively. In May 2019 the Company and Sekisui terminated the R&D portion of their distribution and development agreement. There was no collaborative R&D revenue from Sekisui for the three months ended June 30, 2020 and 2019. The Company had cost of product sales relating to Sekisui of approximately $452,000 and $661,000, respectively, and R&D expenses relating to Sekisui of approximately $0 and $539,000, respectively, for the three months ended June 30, 2020 and 2019.
     
  As of June 30, 2020 and March 31, 2020, the Company had approximately $1.1 million and $0.9 million, respectively, classified as due to related party (Sekisui) on the accompanying balance sheets. The Company satisfied the financial obligation by payment in full on July 21, 2020.
     
  As of June 30, 2020 and March 31, 2020, the Company had approximately $271,000 of deferred revenue from Sekisui classified as deferred revenue on the accompanying balance sheets.