Note 6 - Research and Development Tax Rebate Receivable

3 Months Ended

Mar. 31, 2021

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

three

 months ended

March 

31,

2021

 and

2020,

the Company recorded a rebate receivable of approximately

$133,452

 and

$133,447,

respectively, related to qualified R&D activities incurred. At

March 

31,

2021

 and

December 31, 2020,

we had a total R&D rebate receivable of

$720,029

 and

$634,940,

respectively.

 The Company had realized gains on foreign currency exchange during the

three

months ended

March 

31,

2021

 and

March 

31,

2020,

of approximately

$5,945

 and

$19,965,

respectively, which is included in Other Expense, net in the Condensed Consolidated Statements of Operations.