Grant Revenue

3 Months Ended

Mar. 31, 2023

Disaggregation of Revenue [Line Items]

Grant Revenue

13. Grant Revenue

In August 2021, the Company was approved to receive funding from the PTC Grant for the Phase 2 study of CNS sGC stimulation in AD with vascular features. The granting period was July 1, 2021, to December 31, 2022, and the Company received an award of $2 million. The Company determined that this transaction is non-reciprocal as there is not considered to be a commensurate value exchanged with the Alzheimer's Association as the funding provider. Where commensurate value is not exchanged for goods and services provided, a recipient assesses whether the grant is conditional or unconditional. The Company considered all conditions and barriers associated with this grant and determined the grant is conditional and revenue will be recognized upon achieving certain milestones and incurring internal costs specifically covered by this grant. Under ASC 958-605, revenues will be recognized as the Company incurs expenses related to the PTC Grant.

The Company has incurred no costs associated with the grant for the three months ended March 31, 2023, compared to approximately $0.5 million of expenses associated with the grant for the three months ended March 31, 2022. The Company had a deferred revenue balance of approximately $0.1 million related to advance billings as of March 31, 2023.