3.Research Premium and Grant Revenue

Research premium and grant revenue consists of the following items:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2016		2017		2016		2017
Research premium	$	944	$	1,277	$	4,095	$	3,653
Government grants	—		163		—		464
Grants from WWFF	27		28		80		80

Total	$	971	$	1,468	$	4,175	$	4,197

Research premium and grant revenue comprises (1) the research premium from the Austrian government, (2) grants received from the Austrian Research Promotion Agency (Österreichische Forschungsförderungsgesellschaft, or FFG) and the Vienna Business Promotion Fund (Wiener Wirtschaftsförderungsfonds, or WWFF) and (3) the benefit of government loans at below-market interest rates.

The research premium the Company receives from the Austrian government is calculated at a specified percent of specified research and development cost base. The Company recognizes the research premium as long as it has incurred research and development expenses. The WWFF grant is paid out through the landlord in the form of a monthly reduction in lease payments and is recognized over the period from grant date in March 2010 until end of the lease termination waiver term in December 2017. All grants are non-refundable as long as the conditions of the grant are met. The Company is and has been in full compliance with the conditions of the grants and all related regulations.