Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.20.2
Related Party Transactions
6 Months Ended
Sep. 30, 2020
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 13 — RELATED PARTY TRANSACTIONS

 

In October 2017, Sekisui purchased all outstanding shares of the Company’s 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 and six months ended September 30, 2020 and 2019.

 

  The Company sells products and provides collaborative research & development (“R&D”) services to Sekisui. As of September 30, 2020 and March 31, 2020, the Company had a receivable from Sekisui of approximately $189,000 and $290,000, respectively. The Company recorded product sales of approximately $476,000 and $634,000 for the three months ended September 30, 2020 and 2019, and approximately $896,000 and $1,584,000 for the six months ended September 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 and six months ended September 30, 2020 and 2019. The Company had cost of product sales relating to Sekisui of approximately $603,000 and $604,000 for the three months ended September 30, 2020 and 2019, and approximately $1.1 million and $1.3 million for the six months ended September 30, 2020 and 2019, respectively. R&D expenses relating to Sekisui were approximately $0 and $1,000 for the three months ended September 30, 2020 and 2019, and approximately $0 and $541,000 for the six months ended September 30, 2020 and 2019, respectively.
     
  As of September 30, 2020 and March 31, 2020, the Company had approximately $0.2 million and $0.9 million, respectively, classified as due to related party (Sekisui) on the accompanying balance sheets. The Company satisfied the $0.9 million obligation at March 31, 2020 (related to product development financing payments made by Sekisui) by payment in full on July 21, 2020. The $0.2 million obligation at September 30, 2020 represents amounts due related to the distribution portion of our strategic partnership with Sekisui.
     
  As of September 30, 2020 and March 31, 2020, the Company had approximately $95,000 and $271,000 of deferred revenue from Sekisui classified as deferred revenue on the accompanying balance sheets, respectively.