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7. GRANTS
9 Months Ended
Sep. 30, 2019
Research and Development [Abstract]  
GRANTS

7.   GRANTS

 

In June 2016, the German State of Schleswig-Holstein granted PBAG approximately 874,000 Euro (approximately $1,021,000) for further research and development of the Company's pharmaceutical product Elafin (the “Grant”). The Grant, as amended, covers 50% of eligible research and development costs incurred from December 1, 2015 through November 30, 2019.

 

Research and development expenses for the three-month periods ended September 30, 2019 and 2018 were reduced by approximately $32,000 and $37,000, respectively, for Grant funds received and accrued during those periods. For the nine-month periods ended September 30, 2019 and 2018, research and development expenses were reduced by Grant funds of approximately $94,000 and $270,000, respectively. Approximately €19,000 ($20,000) and €33,000 ($38,000) of additional eligible expenses that were not previously reimbursed at September 30, 2019 and December 31, 2018, respectively, are included in the accompanying condensed consolidated balance sheets as grant funds receivable.

 

During the nine months ended September 30, 2018, the company received approval from the government to submit certain expenses for reimbursement that had been previously expensed under GAAP. These expenses amounted to $177,000 and resulted in grant revenue exceeding grant expenses for the period. This has resulted in the presentation of net Grant revenue for the nine months ended September 30, 2018, totaling $113,000.