Collaboration Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Collaboration Revenue

3. Collaboration Revenue

Background

In October 2020, the Company entered into a License Agreement (the “Roche License Agreement”) with F. Hoffmann-LaRoche Ltd. and Genentech, Inc. (together, “Roche”) under which the Company granted an exclusive license for certain development and commercialization rights related to bemnifosbuvir outside of the United States (other than for certain HCV uses) to Roche.

On November 12, 2021, Roche provided the Company with a notice of termination of the Roche License Agreement. Under the terms of the Roche License Agreement, the termination was effective in February 2022. Upon termination, the rights and licenses granted by the Company to Roche under the Roche License Agreement were returned to the Company, resulting in the Company having all rights to continue the clinical development and future commercialization of bemnifosbuvir worldwide. Global development plan activities and related cost sharing between the parties continued through the effective date of the termination.

The Company concluded that the notice of termination represented a contract modification for accounting purposes. The Company further concluded that upon receipt of the notice of termination, all of the Company's performance obligations had been completely satisfied. As a result, the Company recognized all remaining deferred revenue as collaboration revenue within the consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2021.

Prior to receipt of the termination notice, the Company classified all revenues recognized under the Roche License Agreement as collaboration revenue within the accompanying consolidated statements of operations and comprehensive income (loss). For the three and six months ended June 30, 2021, the Company recognized collaboration revenue of $60,391 and $126,376, respectively, related to the Roche License Agreement.

The activities to complete the global development plan were accounted for under ASC 808. Expenses incurred and reimbursements made or received from Roche were accounted for pursuant to ASC 730, Research and Development. As such, the Company was expensing costs as incurred, including any reimbursements made to Roche, and recognizing reimbursement received from Roche as a reduction of research and development expense through the effective date of the termination.

For the three and six months ended June 30, 2022, costs reimbursable by Roche, which are reflected as a reduction to operating expenses were $0 and $845, respectively. For the three and six months ended June 30, 2021, costs reimbursable by Roche, which are reflected as a reduction to operating expenses, were $2,478 and $5,897, respectively. The Company recorded research and development expense of $0 and $9,578 during the three and six months ended June 30, 2022, respectively, related to its share of costs incurred by Roche. The Company recorded research and development expense of $23,212 and $37,729 during the three and six months ended June 30, 2021, respectively, related to its share of costs incurred by Roche. As of June 30, 2022 the Company recorded accounts payable of $8,733 and as of December 31, 2021 the Company recorded accrued expenses of $10,417, related to amounts payable to Roche pursuant to the cost share agreement.