|12 Months Ended|
Dec. 31, 2021
15. Subsequent Events
On March 30, 2022, the Company entered into a royalty-based financing with R-Bridge Healthcare Fund, an affiliate of CBC Group, or the R-Bridge Financing. In connection with this financing, the Company will receive an upfront amount of $15.0 million, plus $15.0 million upon first commercial sale of OLINVYK in China. The Company will also receive an additional $10.0 million upon achievement of either a commercial or financing milestone.
The R-Bridge Financing will be repaid through assignment to R-Bridge of all royalties from the Company’s license with its partner in China, Jiangsu Nhwa Pharmaceutical, or Nhwa, and through a 4% net revenue interest in U.S. net sales of OLINVYK. This U.S. revenue interest will be capped at $10.0 million if Chinese approval occurs by year-end 2023. In the event Chinese approval does not occur by that time, the U.S. revenue interest will increase to 7% and will continue until certain combined totals of U.S. revenue interest and Chinese royalties are repaid. The Company retains all milestones from our partnership with Nhwa, including a $3.0 million milestone on Chinese approval.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef