Note 5 - Research and Development Tax Rebate Receivable

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Research and Development Tax Rebate Receivable [Text Block]

NOTE

5:

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

three

and the

nine

 months ended

September 30, 2019 

the Company incurred qualified R&D expenses of approximately

$449,000

and 

$916,000

 respectively, and

$148,000

 and

$764,000,

respectively, for the

three

and

nine

 months ended

September 30, 2018. 

The Company recorded a rebate receivable of approximately

$398,000

and

$333,000

for the

nine

 months ended

September 30, 2019

and

2018,

respectively, and a corresponding credit to R&D expenses. At

September 30, 2019,

we had a total R&D rebate receivable of approximately

$569,000

that includes approximately

$171,000

receivable remaining from the year ended

December 31, 2018.