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Note 13 - Revenue and Concentration of Credit Risk
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12 Months Ended |
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Dec. 31, 2014
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| Risks and Uncertainties [Abstract] | |
| Concentration Risk Disclosure [Text Block] |
13. Revenue and Concentration of Credit Risk
In September 2006, the Company entered into a multi-year research contract with NIH and NIAID to design, develop and clinically test an autologous HIV immunotherapy capable of eliciting therapeutic immune responses. The Company is using funds from this contract to develop AGS-004. Under this contract, as amended, the NIH and NIAID have committed to fund up to a total of $39.8 million, including reimbursement of direct expenses and allocated overhead and general and administrative expenses of up to $38.4 million and payment of other specified amounts totaling up to $1.4 million upon the Company’s achievement of specified development milestones. Since September 2010, the Company has received reimbursement of its allocated overhead and general and administrative expenses at provisional indirect cost rates equal to negotiated provisional indirect cost rates agreed to with the NIH and NIAID in
September 2010. These provisional indirect cost rates are subject to adjustment based on the Company’s actual costs pursuant to the agreement with the NIH and NIAID. This commitment originally extended until May 2013. The Company agreed to an additional modification of the Company’s contract with the NIH and the NIAID under which the NIH and the NIAID agreed to increase their funding commitment to the Company by an additional $5.4 million in connection with the extension of the contract from May 2013 to September 2015. Additionally, a contract modification for a $0.5 million increase was agreed to by the NIH on September 18, 2014 to cover a portion of the manufacturing costs of the planned phase 2 clinical trial of AGS-004 for long-term viral control in pediatric patients. The NIH’s commitment under the contract extends to July 2016. The Company has agreed to a statement of work under the contract, and is obligated to furnish all the services, qualified
personnel, material, equipment, and facilities, not otherwise provided by the U.S. government, needed to perform the statement of work.
For the years ended December 31, 2012, 2013 and 2014, the Company recorded revenue under this agreement of $7,032,760, $4,421,689 and $1,797,054, respectively. The Company has recorded total revenue of $36.8 million through December 31, 2014 under the NIH agreement. As of December 31, 2014, there was up to $3.0 million of potential revenue remaining to be earned under the agreement with the NIH. As of December 31, 2013 and 2014, the Company recorded a receivable from the NIH and NIAID of $424,501 and $129,019, respectively, and a payable to subcontractors of $27,925 and $8,493, respectively.
The Company’s grant revenue is earned under this contract with NIH and NIAID. The concentration of credit risk is equal to the outstanding accounts receivable and unbilled balances and such risk is subject to the credit worthiness of the NIH and NIAID. There have been no credit losses under this arrangement.
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