Note 6 - Research and Development Tax Rebate Receivable

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Research and Development Tax Rebate Receivable [Text Block]

NOTE

6:

RESEARCH AND DEVELOPMENT TAX REBATE RECEIVABLE

On

May 23, 2017,

Atossa formed a wholly-owned subsidiary in Australia called Atossa Genetics AUS Pty Ltd. The purpose of this subsidiary is to perform research and development activities (“R&D”) including our Phase

1

and Phase

2

Endoxifen clinical trials. Australia offers an R&D cash rebate of

$0.435

per dollar spent on qualified R&D activities incurred in the country. For the years ended

December 31, 2018

and

2017,

the Company incurred qualified R&D expenses in Australia of approximately

$851,000

and

$824,000,

respectively. The Company recorded a rebate receivable of approximately

$370,000

and

$358,000

at

December 31, 2018

and

2017,

respectively, and a corresponding credit to R&D expenses for the years then ended. At

December 31, 2018,

we had a total R&D rebate receivable of approximately

$518,000

that included approximately

$148,000

receivable remaining from the year ended

December 31, 2017.