NanoViricides Inc. (NNVC)

[loanranger]

More confusion or more clarity?

"On February 27, 2007, NanoViricides, Inc. entered into a sublease to occupy 5,000 square feet of space at 4 Research Drive, Woodbridge, Connecticut at a monthly rent of $11,667, plus an additional $500 per month for utilities. The term of the occupancy expired January 30, 2009."
http://globaldocuments.morningstar.com/documentlibrary/document/e57f62e9ec8eb54281c0a49c7dfc9441.msdoc/original

"The Company’s principal executive offices are located at 135 Wood Street, West Haven, Connecticut, and include approximately 7,000 square feet of office and laboratory space at a base monthly rent of $7,311. Commencing September 1, 2008, the Company rented additional storage space and the base monthly rent increased to $8,695. The lease expired on February 28, 2011, and the Company has continued to occupy the space on a month to month basis.

We subcontract the laboratory research and development work to TheraCour Pharma, Inc., which has a 5,000 square foot laboratory in the same building. Management believes that the space is sufficient for the Company to monitor the developmental progress at its subcontractors."
http://www.sec.gov/Archives/edgar/data/1379006/000114420414058463/v390044_10k.htm#a_005


A google search for TheraCour and:
15,000 square feet
15,000 sq ft
15,000 sf

all yielded no results.


It seems as if TheraCour has 5,000 square feet in the Wood Street building with NNVC and I see no evidence that they have any other property. I haven't found anything that tells us whether NNVC subleases TheraCour the 5,000 ft out of the 7,000 that they lease or whether TheraCour pays the landlord directly as a tenant for a separate 5,000 feet.

This was the license agreement term that raised the issue:
"To the extent not paid pursuant to prior license agreements, Nano shall further pay to TheraCour a monthly laboratory facilities fee of $25,000.00."
And frankly my concern was regarding TheraCour's use of the Shelton facility while also receiving a facility fee FROM THE OWNER OF THE FACILITY!

I can't speak for anyone else but your recollection that "Theracour still has its 15k sq ft R&D facility" when there seems to be no easy-to-find evidence that they ever had a 15,000 square foot facility doesn't clear anything up for me.

This level of confusion obviously shouldn't exist regarding a public company. It's a great way for the guy who's wearing 2 hats to play "Button, button, who's got the button?" though.


ps. I see that the NNVC lease at Wood Street has been on a month-to-month basis for quite some time...a unique position for a public company to allow themselves to be in.