Prepaid Drug Product for Testing

12 Months Ended

Dec. 31, 2015

Prepaid Drug Product For Testing [Abstract]

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 research and development ("R&D") 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 incurred installments to its contract drug manufacturing and raw material suppliers totaling $154,667 in late 2014 pursuant to a drug supply contract for the manufacture and delivery of the Company’s lead drug product, BP1001, for testing in a Phase I clinical trial. This amount was carried on the Balance Sheet as of December 31, 2014 at cost as Prepaid Drug Product for Testing. The Company incurred additional installment costs, with advanced payments totaling $559,515 and are carried on the Balance Sheet as of December 31, 2015 as Prepaid Drug Product for Testing (See Note 8).