Note 6 - Research and Development Tax Rebate Receivable

12 Months Ended

Dec. 31, 2020

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 R&D activities including our Phase

1

and Phase

2

Endoxifen and COVID-

19

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

$0.435

per dollar spent on qualified R&D activities incurred in the country. During the year ended

December 

31,

2020

 and

December 31, 2019,

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

$1,428,600

 and

$1,381,000,

respectively. At

December 31, 2020

and

December 31, 2019,

we had a total R&D rebate receivable of

$634,940

 and

$739,656,

respectively. For the years ended

December 31, 2020

and

2019,

the Company collected R&D cash rebates of

$850,385

 and

$486,550,

respectively.  

The Company had realized gains on foreign currency exchange during the years ended

December 31, 2020

and

December 31, 2019

of approximately

$42,000

 and

45,000,

respectively, which is included in Other income in the Consolidated Statement of Operations.