|6 Months Ended|
Jun. 30, 2017
|Related Party Transactions [Abstract]|
5. Related-Party Transactions
Due from related parties consists of receivables due from another subsidiary of the Parent related to payroll services provided by Calyxt to the other subsidiary.
Due to related parties consists of cash advances, license fees, amounts owed under the intercompany management agreement, and interest charged on outstanding amounts. Amounts due to the Parent that are included in due to related parties on the balance sheet bear interest at a rate of the European Interbank Offered Rate for 12 months (EURIBOR 12) plus 5% per annum. All interest expense in the statements of operations relates to interest accruing on amounts due to the Parent. In June 2017, the Company received a cash advance from the Parent of $3.0 million to fund ongoing operations.
The Company has a management agreement with its Parent, in which the Company pays the Parent a monthly fee for certain services provided by the Parent, which include general sales and administration functions, accounting functions, legal advice, human resources, and information technology. The Company recorded expenses associated with the management agreement of $482 thousand and $542 thousand for the three months ended June 30, 2017 and 2016, respectively. For the three months ended June 30, 2017 and 2016, the Company classified $446 thousand and $497 thousand, respectively, as a component of sales, general, and administrative expenses, while $36 thousand and $45 thousand, respectively, were classified as a component of R&D expenses. The Company recorded expenses associate with the management agreement of $895 and $913 thousand for the six months ended June 30, 2017 and 2016, respectively. For the six months ended June 30, 2017 and 2016, the Company classified $830 thousand and $822 thousand, respectively, as a component of sales, general, and administrative expenses, while $65 thousand and $91 thousand, respectively, were classified as a component of R&D expenses.
TALEN technology was invented by researchers at the University of Minnesota and Iowa State University and exclusively licensed to Cellectis. Calyxt obtained from Cellectis an exclusive license to the technology for the use in plants. TALEN technology is the primary technology used by Calyxt today. Calyxt seeks to leverage TALEN technology by creating plants and food products with consumer health benefits. TALEN technology works by enabling the Company to edit genes and overcoming many of the limitations of traditional trait-development techniques. The Company will be required to pay a royalty to Cellectis on future sales for the licensing of the technology.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef