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Grant Revenue and Receivables
3 Months Ended
Mar. 31, 2021
Revenue From Contract With Customer [Abstract]  
Grant Revenue and Receivables

4. Grant revenue and receivables

 

NIH Rapid Acceleration of Diagnostics - Advanced Technology Platforms (RADx) Initiative contracts

In July 2020, the Company was awarded a $0.4 million subaward grant from the University of Massachusetts Medical School for Phase 1 of the NIH’s RADx initiative and a $25.4 million contract from the NIH directly for Phase 2 of the RADx initiative.

The NIH contract for Phase 2 of the RADx initiative is subject to meeting certain milestones and is comprised of five stages. The terms and milestone conditions of the first two stages, for consideration of up to $10.1 million, was agreed to in July 2020 while the milestone conditions and terms of the final three stages, for consideration of up to $15.3 million, was agreed to in December 2020. The Phase 2 RADx contract has a performance period of one year beginning July 2020 and contains key deliverables and milestones that directly support the upgrade and addition of new manufacturing lines which will support the Company’s expansion of its manufacturing capacity to produce and distribute its COVID-19 assay cartridge. If the NIH contract is terminated by the NIH for cause upon the Company’s failure to perform as specified in the NIH contract, the Company would be required to repay the NIH 15.0% of the amounts previously received as liquidating damages, in place of any actual damages. Such repayment would not be required if a delay in delivery or performance was beyond the Company’s control.

During the three months ended March 31, 2021, the Company recognized as revenue and received $7.0 million in relation to the RADx initiative. The Company received $1.2 million relating to completing the second stage of the contract and $5.8 million relating to completing the third stage of the contract during the three months ended March 31, 2021. The remaining $9.5 million available under the RADx contract is contingent upon the Company meeting agreed-upon contractual milestones. There were no unbilled receivables recorded for this contract as of March 31, 2021 or December 31, 2020.

During the three months ended March 31, 2020, the Company recognized $0.2 million of grant revenue related to efforts incurred under each of its NIH and CARB-X grants.