Prepaid Drug Product for Testing

3 Months Ended

Mar. 31, 2020

Prepaid Drug Product For Testing

Prepaid Drug Product for Testing

3.Prepaid Drug Product for Testing

Advance payments, including nonrefundable amounts, for goods or services that will be used or rendered for future clinical development activities are deferred and capitalized. Such amounts will be recognized as an expense as the related goods are delivered or the related services are performed. The Company recognized certain expenses and incurred installment costs for its contract drug manufacturing and raw material suppliers with prepayments totaling $0.8 million as of December 31, 2019 pursuant to drug supply contracts for the manufacture and delivery of prexigebersen for testing in two Phase 2 clinical trials and Bcl‑2 for testing in a Phase 1 clinical trial. The Company recognized certain expenses and incurred additional installment costs during the first quarter of 2020, with advanced payments totaling $0.8 million as of March 31, 2020.