16. Related party transactions

The Company engaged a firm managed by an executive of the Company for professional services related to accounting, finance and other administrative functions. For the year ended December 31, 2021, the costs incurred under this arrangement totaled $0.6 million, of which $0.1 million was recorded in stockholders’ equity (deficit) as a reduction to additional paid-in capital as a result of the Business Combination and $0.5 million was recorded as general and administrative expense in the consolidated statements of operations and comprehensive loss. For the year ended December 31, 2020, the costs incurred under this arrangement totaled $0.7 million, of which $0.7 million was capitalized as deferred offering costs associated with the business combination with FSDC and $44 thousand was recorded as general and administrative expense in the accompanying consolidated statements of operations and comprehensive loss. As of December 31, 2021 and 2020, amounts owed under this arrangement totaled $0 and $0.3 million, respectively, and is included in accounts payable in the accompanying consolidated balance sheet. The executive of the Company associated with this firm resigned from the Company in February 2021.