In addition, in accordance with the relevant authoritative guidance, for any matters in which the likelihood of material loss is at least reasonably possible, the Company will provide disclosure of the possible loss or range of loss. If a reasonable estimate cannot be made, however, the Company will provide disclosure to that effect. The Company expenses legal costs as they are incurred.
On March 30, 2018, the U.S. District Court for the District of Massachusetts granted the Company’s motion to dismiss the a putative class action lawsuit filed September 28, 2016, entitled Mazurek v. Seres Therapeutics, Inc., et.al., alleging violations of Sections 10(b), 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934, as amended, by making allegedly false and misleading statements and omissions about the Company’s clinical trials for its product candidate SER-109 in the Company’s public disclosures between June 25, 2015 and July 29, 2016.
The Company has not accrued any liabilities related to legal contingencies in its consolidated financial statements as of March 31, 2018 or December 31, 2017.
Related Party Transactions
As described in Note 8, in January 2016 the Company entered into a License Agreement with NHS for the development and commercialization of certain product candidates in development for the treatment and management of CDI and IBD, including UC and Crohn’s disease. NHS is a related party since NHS is an affiliate of Nestlé Health Science, one of the Company’s significant stockholders. During the three months ended March 31, 2018 and 2017, the Company recognized $3,766 and $3,015 of related party revenue associated with the License Agreement. As of March 31, 2018, there was $120,192 of deferred revenue related to the License Agreement, which is classified as current or non-current in the consolidated balance sheets. The Company has made no payments to NHS during the three months ended March 31, 2018. There is $175 due from NHS as of March 31, 2018 for the reimbursement of development costs, which is classified as other current assets in the Company’s consolidated balance sheet.