Note 18. Commitments
Accounting policy
The commitment amounts are associated with contracts that are enforceable and legally binding and that specify all significant terms, including fixed or minimum services to be used, fixed, minimum or variable price provisions, and the approximate timing of the actions under the contracts. They do not include obligations under agreements that we can cancel without a significant penalty.
Details of commitments
| As of December 31, 2017 | Total | Less than 1 year |
1 - 3 years |
3 - 5 years |
More than 5 years |
|||||||||||||||
| $ in thousands | ||||||||||||||||||||
|
Sale and lease-back agreement |
30,080 | 1,055 | 2,676 | 2,676 | 23,673 | |||||||||||||||
|
Facility lease agreements |
11,539 | 2,471 | 4,702 | 1,670 | 2,697 | |||||||||||||||
|
License agreements |
18,413 | 1,238 | 2,476 | 2,476 | 12,223 | |||||||||||||||
|
Manufacturing agreements |
7,679 | 7,679 | — | — | — | |||||||||||||||
|
Other agreements |
1,702 | 1,702 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Total contractual obligations |
69,414 | 14,145 | 9,854 | 6,821 | 38,593 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Obligations under the terms of the sale and lease-back agreement
The sale and lease-back agreement entered into by Calyxt in the third quarter of 2017 has a defined lease term and is classified as an operating lease agreement under IFRS. It results in off-balance sheet commitments.
Obligations under the terms of the facility lease agreements
Facility lease agreements in Paris, France, and in New York City, New York; Montvale, New Jersey; New Brighton, Minnesota; and Roseville, Minnesota (all in the USA) have been subscribed for a defined term. Future payments of these leases as disclosed in the table above, along with the letters of credit provided to the landlords of the Company’s facilities in New York and in New Brighton, are off balance sheets commitments.
Obligations under the terms of license agreements
We have entered into various license agreements with third parties that subject us to certain fixed license fees, as well as fees based on future events, such as research and sales milestones.
We also have collaboration agreements whereby we are obligated to pay royalties and milestones based on future events that are uncertain and therefore they are not included in the table above.
Obligations under the terms of manufacturing agreements
We have manufacturing agreements whereby we are obligated to pay for services rendered in the next year regarding our products UCART123, UCARTCS1 and UCART22.