Commitments and Contingencies
|6 Months Ended|
Jan. 31, 2016
|Commitments and Contingencies.|
|Commitments and Contingencies||
Note 10—Commitments and Contingencies
In the ordinary course of business, the Company may become a party to lawsuits involving various matters. The Company is unaware of any such lawsuits presently pending against it which individually or in the aggregate, are deemed to be material to the Company’s financial condition, or results of operations.
On December 27, 2015, upon the resignation of Dr. Mai Le, the Company’s Chief Medical Officer, the Company and Dr. Le entered into a Separation and Release Agreement, effective December 31, 2015, pursuant to which the Company agreed to pay Dr. Le severance of $286,000, less applicable withholdings, in the form of salary continuation in accordance with the Company’s customary payroll practices. Dr. Le will also be eligible to receive a bonus for calendar year 2015, should the Company’s Board of Directors or Compensation Committee thereof choose to grant discretionary bonuses to the Company’s officers. Dr. Le signed a release in favor of the Company (subject to her statutory rights). As of January 31, 2016, the Company has recorded approximately $300,000 in accrued compensation in its condensed balance sheet related to this agreement.
On December 31, 2014, the Company entered into a lease agreement for approximately 34,000 rentable square feet located at 5820 Nancy Ridge Drive, San Diego, California to serve as the Company’s new corporate headquarters and research and development laboratory. The lease term commenced on October 19, 2015 and expires 120 months after commencement. The Company has an option to extend the lease for an additional 5 years, if notice is given within 12 months prior to the expiration of the lease term. The Company also has the right to terminate the lease after the expiration of the 84th month after the lease commencement so long as the Company delivers to the landlord a written notice of its election to exercise its termination right no less than 12 months in advance. The lease agreement provides for base rent at $2.65 per rentable square feet, subject to a 3% rate increase on each annual anniversary of the first day of the first full month during the term of the lease agreement. Upon commencement of the lease, 12 months of rent abatement is provided. The Company’s corporate relocation was completed in October 2015 and its research and development lab relocation was completed in November 2015. In addition, the Company is required to share in certain operating expenses of the premises. In December 2014, pursuant to the lease agreement, the Company delivered a security deposit of approximately $90,000.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef