Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies
9 Months Ended
Sep. 30, 2021
Commitments and Contingencies  
Commitments and Contingencies

10Commitments and Contingencies

Litigation and Other

The Company is subject, from time to time, to claims by third parties under various legal disputes. The defense of such claims, or any adverse outcome relating to any such claims, could have a material adverse effect on the Company’s liquidity, financial condition and cash flows.

On August 26, 2021, Torreya Capital LLC (“Torreya”) filed a demand for arbitration with the American Arbitration Association in New York, New York in connection with a claim by Torreya that it is entitled to a transaction fee of $1,035,000 in connection with the Company’s IPO, plus the costs of arbitration, based on services Torreya alleges it provided for the Company as a financial advisor to the Company prior to the IPO. The Company believes that Torreya’s demand is baseless and without merit. The Company intends to defend itself vigorously.

Employment Agreement and Deferred Compensation Plan

On February 1, 2021, the Company entered into an employment agreement with its Director of Clinical Operations (the “Director”). Per the terms of the agreement, the Director is entitled to receive a cash bonus with a target amount of no less than 20% of the Director’s then-current base salary. The bonus is subject to achievement of annual bonus metrics set by the Board. The employment agreement will continue in effect until terminated by either party pursuant to its terms. If the termination of the agreement is related to a change of control, the Director is entitled to receive a change of control termination payment equal to 50% of the Director’s then-current base salary and 50% of the bonus for the year in which the termination occurs.