Collaboration Agreements

9 Months Ended

Sep. 30, 2021

Collaboration Agreements [Abstract]

Collaboration Agreements

Note 6.   COLLABORATION AGREEMENTS

Surface Oncology, Inc.

In November 2017, the Company entered into a research collaboration and license option agreement with Surface Oncology, Inc. (“Surface”) to identify and select antibodies against two target antigens, using the Company’s proprietary technology as described in the agreement. The term for each research program is nine to twelve months (not exceeding twelve months unless extended by written agreement) including time necessary for any functional assessment conducted by Surface following the commencement of the research program. Surface will provide the Company material to carry out the research activities. During the research program term, the Company also may grant Surface a non-exclusive, worldwide, limited-purpose license for each target to use the Company’s research program materials for conducting the research work pursuant to the agreement. The Company recorded revenue of $50,000 for the three months and $900,000 for the nine months ended September 30, 2021, related to its agreement with Surface, $50,000 of which was for an annual maintenance fee for a product license and $850,000 which was for an exclusive product license. The Company recorded $50,000 of revenue in the three and nine months ended September 30, 2020 related to its agreement with Surface, all of which was for an annual maintenance fee for a product license.  This agreement will expire upon the latest of the expiration of both research programs and all evaluation and testing periods.

Under the agreement, Surface may purchase exclusive options, exercisable by providing a written notice to the Company, to obtain (i) an exclusive product license to make, use, sell and import products incorporating antibodies targeting the first antigen and (ii) an exclusive research tool license to use antibodies targeting the second antigen to perform research.  Surface purchased the first option and exercised the second option and the Company entered into an exclusive research tool license agreement with Surface in the third quarter of 2019.