Quarterly report pursuant to Section 13 or 15(d)

Grant Revenues

Grant Revenues
6 Months Ended
Jun. 30, 2017
Revenue Recognition and Deferred Revenue [Abstract]  
Grant Revenues

9. Grant Revenues

In June 2016, Pelican entered into a Cancer Research Grant Contract (“Grant Contract”) with CPRIT, under which CPRIT awarded a grant not to exceed $15.2 million for use in developing cancer treatments by targeting a novel T cell costimulatory receptor (namely, TNFRSF25). The Grant Contract covers a three-year period from June 1, 2016 through May 31, 2019.

Upon commercialization of the product, the terms of the Grant Contract require Pelican to pay tiered royalties in the low to mid-single digit percentages. Such royalties reduce to less than one percent after a mid-single-digit multiple of the grant funds have been paid to CPRIT in royalties.

The Company recognized grant revenue of $411,250 and $0 in the three and six months ended June 30, 2017 and 2016, respectively, for qualified expenditures under the grant. As of June 30, 2017 the Company had deferred revenue of $1,409,212 for proceeds received but for which the costs had not been incurred or the conditions of the award had not been met.