Revenue

9 Months Ended

Sep. 30, 2022

Revenue Recognition [Abstract]

Revenue

Revenue

NARCAN® Royalties

The Company's primary source of revenue has been from royalty payments received from NARCAN® net sales by EBS. During the three months ended September 30, 2022 the Company did not record any royalty revenue. On August 10, 2022, the Company, delivered a notice (the "Default Notice") to EBS under section 10.3 the Adapt Agreement to put EBS on notice that EBS had breached one or more of its obligations under the Adapt Agreement. On November 14, 2022, the Company entered into an agreement with EBS to settle the Default Notice dated August 10, 2022 and terminate the Company's rights to receive any further payments, including royalties, under the License Agreement (see Note 13). For the nine months ended September 30, 2022, the Company recorded $4.5 million in royalty revenue related to its agreement with EBS, before it was terminated.

BARDA Contract

    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 provides funding up to approximately $10.8 million and covers activities related to the New Drug Application for OPTN003 with the Food and Drug Administration. BARDA has awarded approximately $10.8 million of the contract as of September 30, 2022. During the three and nine months ended September 30, 2022, the Company recognized revenue of $0.2 million and $4.0 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 provided the Company with additional resources for the development of OPNT003.

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.

As of March 31, 2022, the Company had received the entire $7.4 million, and all the work related to the grant was complete. During the three and nine months ended September 30, 2022, the Company recognized revenue of $0 and $17 thousand, respectively related to this grant.

The following is a summary of the Company’s deferred revenue activity as of September 30, 2022:

(in thousands)	NIDA Grant		Total
Balance as of December 31, 2021	$	17	$	17
Additions to deferred revenue	—		—
Recognized as revenue	(17)		(17)
Balance as of September 30, 2022	$	—	$	—