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Subsequent Events
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9 Months Ended | |
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Sep. 30, 2014
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| Subsequent Events [Abstract] | ||
| Subsequent Events |
11. Subsequent Events
Lease Obligation
On October 3, 2014, the Company entered into a 15 year lease for office space in New York, NY at an average annual rent of $2.7 million. Also, on October 3, 2014, the Company entered into Desk Space Agreements with OPPM and TG Therapeutics, Inc. (“TGTX”), to occupy 20% and 40%, respectively, of the New York, NY office space that requires them to pay their respective share of the average annual rent of $0.5 million and $1.1 million, respectively. These initial rent allocations will be adjusted periodically, for each party, based upon actual percentage of the office space occupied. Additionally, the Company has reserved the right to execute additional desk space agreements with additional related and unrelated third parties and those arrangements will also affect the cost of the lease actually borne by the Company. The Company does not expect to take possession of the space until late 2015 or early 2016 and lease expense shall commence upon occupancy of the space. The lease was executed by the Company to flexibly facilitate the Company’s new business growth plan, which includes formation of additional subsidiaries and/or affiliate companies. Mr. Weiss is Executive Chairman, Interim Chief Executive Officer and stockholder of TGTX. The lease is subject to early termination by the Company, or in circumstances including events of default, the landlord, and includes a five-year extension option in favor of the Company.
In connection with this lease, on September 30, 2014, the Company paid $200,000, which was recorded as prepaid rent in the accompanying Unaudited Condensed Consolidated Balance Sheet as of September 30, 2014 and $119,000 recorded as deferred rent in the accompanying Unaudited Condensed Consolidated Balance Sheet as of September 30, 2014, which represents the portion of the rent reimbursed by OPPM and TGTX. Also in connection with this lease, the Company was obligated to pledge $1.4 million to secure a line of credit, which is recorded as restricted cash on the Company’s Unaudited Condensed Consolidated Balance Sheet as of September 30, 2014. During October 2014, this obligation was reduced to $0.6 million when OPPM and TGTX paid the Company their respective portions of this pledge.
TSO
The Company has retained an investment banker to evaluate strategic options, including a potential financing, for its TSO asset. |