Annual report pursuant to Section 13 and 15(d)

9. Commitments and Contingencies

9. Commitments and Contingencies
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

9. Commitments and Contingencies


We are involved in certain legal proceedings that arise from time to time in the ordinary course of our business. Except for income tax contingencies, we record accruals for contingencies to the extent that our management concludes that the occurrence is probable and that the related amounts of loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. There is no current or pending litigation of any significance with the exception of the matters that have arisen under, and are being handled in, the normal course of business.


Contractual Commitments


The Company’s contractual commitments for future periods, licensing agreements and minimum guaranteed compensation payments as described in the following table and associated footnotes:


Year ending
December 31,
Agreements (1)
Agreements (2)
2021   $ 187,500     $ 197,000     $ 384,500  
2022     187,500             187,500  
2023     187,500             187,500  
2024     187,500             187,500  
2025     187,500             187,500  
Total   $ 937,500     $ 197,000     $ 1,134,500  


  (1) Consists of license maintenance fees to Temple University in the amount of $187,500 paid annually through the life of the underlying patents or until otherwise terminated by either party. For details of the Temple Licensing Agreements, see Note 6 of the Financial Statements, attached hereto.
  (2) Consists of certain contractually provided benefits to a former executive officer pursuant to a severance agreement and amendments thereto. As of December 31, 2020, $197,000 was the balance due under this agreement and was included as part of Accounts payable and accrued expenses in the accompanying consolidated balance sheet. The Company is in arrears in payments due under the severance agreement and amendments thereto. The former executive officer disputes the amount identified in the above chart, claiming the above amount is less than the amount to which he believes he is owed. Absent an agreement to settle the dispute, and in the event the former executive officer elects to initiate litigation regarding the dispute, including claims for interest and penalties to which the former executive officer believes he is entitled, the Company has reserved, and if necessary and appropriate will assert, all factual and legal defenses, counter-claims, rights, and remedies it may have in any such suit.