U.S. Department of Defense (DoD) expense reimbursement contract

3 Months Ended

Mar. 31, 2021

U.S. Department of Defense (DoD) expense reimbursement contract

U.S. Department of Defense (DoD) expense reimbursement contract

3. U.S. Department of Defense (DoD) expense reimbursement contract

In July 2020, the Company entered into an Other Transaction Authority for Prototype Agreement (the OTA Agreement) with the DoD to fund the Company’s efforts in developing Biosynthetic Convalescent Plasma (BCP) to treat COVID-19. Under the OTA Agreement, the Company intends to develop BCP for use in the U.S. military population and the U.S. population as a whole, subject to approval by the U.S. Food and Drug Administration (FDA). The amount of funding being made available to the Company under this expense reimbursement contract is $13.3 million which, based on the Company’s anticipated expenditures, is expected to be received through 2021. The Company recorded contra-research and development expense in the amount of $4.0 million for the three months ended March 31, 2021 in the condensed statements of operations. There was no contra-research and development expense for the three months ended March 31, 2020. As of March 31, 2021, the Company had an expense reimbursement receivable balance of $2.6 million due from the DoD in prepaid expenses and other current assets on the condensed balance sheet. Costs that have been reimbursed by the DoD but not yet expensed by the Company are recorded as a deferred research obligation liability for the period. As of March 31, 2021, the Company has a deferred research obligation liability of $0.7 million.