Subsequent Events |
3 Months Ended |
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Mar. 31, 2018 | |
| Subsequent Events [Abstract] | |
| Subsequent Events |
13. Subsequent Events
TRx entered into a Marketing Agreement with PAI, effective April 1, 2017. Under the agreement, TRx promoted, marketed and sold PSP 10 and PSP 20 on behalf of PAI. PAI was obligated to pay a monthly fee of $62,500. PAI and TRx also agreed to share the net revenues from sales of the products, after reimbursing certain expenditures, in a manner designed to achieve a 50/50 split of net revenues above the “break even” point, calculated in accordance with the terms and inputs set forth in the agreement. The revenue sharing continued for a period of six months after termination of the agreement. The agreement had an initial six-month term. On October 1, 2017 the agreement expired by its term. During the first quarter of 2018 the agreement was extended through an addendum with certain modifications to the original agreement related to the revenue sharing and termination clauses. Either party can terminate the agreement under the addendum without cause upon providing 30 days written notice. The Company has received written notice to terminate the PAI Sales and Marketing Agreement. As such, once the 30 day notice period has ended, the contract will be terminated. The termination will likely result in an impairment write-off of the remaining asset value in the second quarter of 2018. There was $2.3 million of fair value assigned to the agreement at the acquisition date as part of our purchase price allocation. Operating expenses will not be materially impacted by the termination of the agreement.
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