Funding Arrangement

3 Months Ended

Mar. 31, 2024

Funding Arrangement [Abstract]

Funding Arrangement

Funding Arrangement

Our vaccine development program for VAX-A1, a novel conjugate vaccine candidate designed to prevent disease caused by Group A Streptococcus, currently is funded in part by a grant obtained from Combating Antibiotic Resistant Bacteria Biopharmaceutical Accelerator (“CARB-X”), a global non-profit partnership dedicated to accelerating antibacterial innovation to tackle the rising global threat of drug-resistant bacteria. The CARB-X grant provides for total potential funding of up to $14.6 million (including $11.7 million awarded to date since the grant’s inception in 2019) upon the achievement of VAX-A1 development milestones through June 2024.

Our vaccine development program for VAX-GI, a novel preclinical vaccine candidate being developed as a preventative treatment for dysentery and shigellosis, which is caused by Shigella bacteria, is currently funded in part by two grants obtained from the National Institutes of Health (“NIH”) administered by the University of Maryland, Baltimore. Our first grant from the NIH was awarded in April 2021 and provides for potential funding up to five years totaling approximately $0.5 million. In June 2023, we received another grant from the NIH that provides for potential funding up to five years totaling approximately $4.6 million.

Income from grants is recognized in the period during which the related specified expenses are incurred, provided that the conditions under which the grants were provided have been met. We recognized nil and $0.7 million of grant income and recorded the amounts in Other income (expense), net in the condensed consolidated statement of operations during the three months ended March 31, 2024 and 2023, respectively. A grant receivable of $0.1 million and nil representing unreimbursed, eligible costs incurred under the agreements were recorded and included in Prepaid expenses and other current assets in the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively.