8. COMMITMENTS AND CONTINGENCIES
|12 Months Ended|
Apr. 30, 2019
|Commitments and Contingencies Disclosure [Abstract]|
|COMMITMENTS AND CONTINGENCIES||
NOTE 8 – COMMITMENTS AND CONTINGENCIES
The Company acquires assets still in development and enters research and development arrangements with third parties that often require milestone and royalty payments to the third-party contingent upon the occurrence of certain future events linked to the success of the asset in development. Milestone payments may be required, contingent upon the successful achievement of an important point in the development life-cycle of the pharmaceutical product (e.g., approval of the product for marketing by a regulatory agency). If required by the license agreements, the Company may have to make royalty payments based upon a percentage of the sales of the pharmaceutical products if regulatory approval for marketing is obtained.
Effective September 1, 2016, the Company entered into a lease for its Leased Premises in California. The term of the lease is for 12 months. In May 2017, the Company entered into an additional two-year lease for the Leased Premises, commencing upon the expiration of the term of the first lease. The term of the new lease expires on August 31, 2019.
On May 29, 2019, the Company entered into an additional twelve-month lease of the Leased Premises, commencing on September 1, 2019. The term of the new lease expires on August 31, 2020.
Rent expenses for these offices for the years ended April 30, 2019 and 2018 were $34,153 and $33,879, respectively.
The following table summarizes the Company’s aggregate future minimum lease payments required under the operating lease as of.
The Company’s material agreements are identified and summarized in Note 1 – Nature of Business – Company Background and Material Agreements.
The Company entered into executive compensation agreements with its three executive officers in March 2015, each of which was amended in December 2015. Each amendment has a term of two years with annual extensions thereafter unless the Company or the officer provides written notification of termination at least ninety days prior to the end of the term or subsequent extensions. The Company also entered a compensation agreement with a Board member in April 2015 which continues in effect until the member is no longer on the Board.
In March 2017, the Company amended the executive compensation agreements. The term for each agreement is two years from an effective date of January 1, 2017. At the same time, the Company amended the compensation agreement with the Board member referenced above. It continues in effect until the member is no longer on the Board.
In March 2019, the Company amended the executive compensation agreements to extend the term for one year with an effective date of January 1, 2019. Except for the term being extended for one more year, all other terms of the executive compensation agreements remain the same.
The Company has four independent directors. Each director receives the same compensation: (i) $12,500 in cash for each calendar quarter of service on the Board; (ii) 500,000 fully-paid, non-assessable shares of the Company’s restricted common stock (“Shares”) annually; and (iii) a five-year option to purchase 500,000 Shares annually at an exercise price equal to the fair market value of the Shares on the date of grant. The Shares and the option Shares fully vest on the date of the grants.
The Company’s Chief Medical Officer (“CMO”) receives: (i) $10,000 in cash for each calendar month of service as the Company’s CMO; (ii) 1,200,000 Shares annually; and (iii) a five-year option to purchase 1,200,000 Shares at an exercise price equal to the fair market value of the Shares on the date of the grant. The Shares and the Option Shares each vest in the amount of 100,000 Shares per month. The Company will indemnify the CMO for her work as the Company’s CMO.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef