Fortress Biotech, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Related Party Transactions (Tables)

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Effective Date and Equity Fee Payable

The following table summarizes, by subsidiary, the effective date of the Founders Agreements and PIK dividend or equity fee payable to the Company in accordance with the terms of the Founders Agreements, Exchange Agreements and the subsidiaries’ certificates of incorporation.

Partner company	Effective Date 1	PIK Dividend as a % of fully diluted outstanding capitalization			Class of Stock Issued
Helocyte	March 20, 2015		2.5	%	Common Stock
Avenue	February 17, 2015		2.5	% 4	Common Stock
Mustang	March 13, 2015		2.5	%	Common Stock
Checkpoint	March 17, 2015		0.0	% 2	Common Stock
Cellvation	October 31, 2016		2.5	%	Common Stock
Caelum	January 1, 2017		2.5	%	Common Stock
Cyprium	March 13, 2017		2.5	%	Common Stock
Aevitas	July 28, 2017		2.5	%	Common Stock
Tamid	November 30, 2017 3		2.5	%	Common Stock

Note 1:	Represents the effective date of each subsidiary’s Founders Agreement. Each PIK dividend and equity fee is payable on the annual anniversary of the effective date of the original Founders Agreement.
Note 2:	Instead of a PIK dividend, Checkpoint pays the Company an annual equity fee in shares of Checkpoint’s common stock equal to 2.5 % of Checkpoint’s fully diluted outstanding capitalization.
Note 3:	Represents the Trigger Date.
Note 4:	Pursuant to the terms of the agreement between Avenue and InvaGen Pharmaceuticals, Inc. during the option period PIK dividends will not be paid nor accrued

Dividends Declared

The following table summarizes, by subsidiary, the PIK dividend or equity fee recorded by the Company in accordance with the terms of the Founders Agreements, Exchange Agreements and the subsidiaries’ certificates of incorporation for the years ended December 31

, 2018 and

2017 ($ in thousands):

Partner company	PIK Dividend Date	Year Ended ‎ December 31, 2018 1			Year Ended ‎ December 31, 2017 2

Aevitas	January 1	$	6		$	–
Avenue 3	January 1		–			1,103
Caelum	January 1		462			302
Cellvation	January 1		5			8
Checkpoint	March 17		1,748			2,296
Cyprium	January 1		3			1
Helocyte	January 1		167			321
Mustang	January 1		2,085			9,479
Tamid	January 1		15			–
Fortress			(4,491	)		(13,510	)
		$	–		$	–

Note 1: Includes 2019 PIK dividend accrued for the year ended December 31, 2018, as Type 1 subsequent event

Note 2: Includes 2018 PIK dividend accrued for the year ended December 31, 2017, as Type 1 subsequent event

Note 3: Pursuant to the terms of the agreement between Avenue and InvaGen Pharmaceuticals, Inc. during the option period PIK dividends will not be paid nor accrued.

Schedule of Effective Date and Annual Management Services Agreement Fee income expense

The following table summarizes, by partner company, the effective date of the MSA and the annual consulting fee payable by the subsidiary to the Company in quarterly installments ($ in thousands):

Fortres s partner	Effective Date	Annual MSA Fee (Income)/Expense
Helocyte	March 20, 2015	$	500
Avenue 2	February 17, 2015		500
[Mustang	March 13, 2015		500
Checkpoint	March 17, 2015		500
Cellvation	October 31, 2016		500
Caelum	January 1, 2017		500
Cyprium	March 13, 2017		500
Aevitas	July 28, 2017		500
Tamid	November 30, 2017 1		500
Fortress			(4,500	)
Consolidated (Income)/Expense		$	–

Note 1:	Trigger Date
Note 2:	Pursuant to the terms of the agreement between Avenue and InvaGen Pharmaceuticals, Inc. during the option period fees under the MSA will not be due nor will they be accrued.