Grants

9 Months Ended

Sep. 30, 2024

Government Assistance [Abstract]

Grants

10. Grants

On October 25, 2021, the Company received a grant award of $2,500,000 from the State of Tennessee for the study of animal cancers and dermatological disorders for the period October 15, 2021 to June 30, 2022 (“the Tennessee Grant” or “the Grant”). The Tennessee Grant was pre-funded; therefore, the funds do not need to be used in full by June 30, 2022. The Tennessee Grant was provided as reimbursement of research and development expenses related to the development of animal health drug products. The Company has elected gross presentation of the Tennessee Grant income whereby grant revenue is recognized as qualifying costs are incurred and there is reasonable assurance that the conditions of the grant have been met. Qualifying costs are presented as research and development expenses included in the Company’s statement of operations, in the period that such costs are incurred.

As of September 30, 2024 and December 31, 2023, $350,440 and $953,248, respectively, are included in unearned grant revenue liability on the accompanying condensed consolidated balance sheets, respectively. The Company recorded grant revenue of $109,745 and $602,808 during the three and nine months ended September 30, 2024, respectively, and $69,733 and $436,600 during the three and nine months ended September 30, 2023, respectively.