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6. GRANTS
12 Months Ended
Dec. 31, 2019
Research and Development [Abstract]  
GRANTS

6. GRANTS

 

In June 2016, the German State of Schleswig-Holstein granted PBAG approximately 874,000 Euros (approximately $1,047,000) 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 October 31, 2020.

 

Research and development expenses for the years ended December 31, 2019 and 2018, were reduced by Grant funds of approximately $128,000 and $306,000, respectively. Grant funds to reimburse approximately $34,000 and $38,000 of such eligible expenses, which were not reimbursed at December 31, 2019 and 2018, respectively, are included in the accompanying consolidated balance sheets as grant funds receivable.

 

During the year ended December 31, 2018, the company received approval from the government to submit certain expenses totaling $177,000 for reimbursement that had been previously expensed under GAAP. This additional Grant reimbursement resulted in grant revenue exceeding research and development expenses for the period. This has resulted in the presentation of net Grant revenue for the year ended December 31, 2018, totaling $107,000.