Revenue

9 Months Ended

Sep. 30, 2021

Revenue Recognition [Abstract]

Revenue

Revenue

    The Company's primary source of revenue is from royalty and milestone payments received from NARCAN® net sales by EBS. During the three and nine months ended September 30, 2021 the Company recorded revenue of $14.0 million and $27.7 million, respectively, related to its agreement with EBS.

    On September 19, 2018, the Company entered into a contract with the Biomedical Advanced Research and Development Authority (“BARDA”), which is part of the U.S. Health and Human Services Office of the Assistant Secretary for Preparedness and Response, to accelerate the Company’s development of OPTN003, its lead product candidate. OPTN003, nasal nalmefene, is a potent, long-acting opioid antagonist currently in development for the treatment of opioid overdose. The contract will provide potential funding up to a maximum of approximately $8.1 million and cover activities related to a planned new drug application ("NDA") submission for OPTN003 with the FDA. BARDA has awarded approximately $6.5 million of the contract through September 30, 2022, with the balance expected to be funded, subject to satisfactory project progress, availability of funds and certain other conditions. During the three and nine months ended September 30, 2021 the Company recognized revenue of $0.9 million and $3.3 million, respectively related to this contract.

Deferred revenue

    On April 17, 2018, the Company was awarded a grant of approximately $7.4 million from the National Institutes of Health’s National Institute on Drug Abuse, ("NIDA"). The grant provides the Company with additional resources for the ongoing development of OPNT003. The Company has been awarded the entire $7.4 million through the period ending March 31, 2022. Government grants are agreements that generally provide cost reimbursement for certain types of expenditures in return for research and development activities over a contractually defined period. The Company recognized revenues from grants in the period during which the related costs were incurred, provided that the conditions under which the grants were provided had been met and only perfunctory obligations were outstanding. During the three and nine months ended September 30, 2021, the Company recognized revenue of $1.4 million and $3.0 million, respectively related to this grant.

    The following is a summary of the Company’s deferred revenue activity as of September 30, 2021:

(in thousands)	NIDA Grant		Total
Balance as of December 31, 2020	$	355	$	355
Additions to deferred revenue	2,187		2,187
Recognized as revenue	(2,542)		(2,542)
Balance as of September 30, 2021	$	—	$	—