Quarterly report pursuant to Section 13 or 15(d)

Grant and Licensing Revenues

Grant and Licensing Revenues
3 Months Ended
Mar. 31, 2019
Revenue Recognition and Deferred Revenue [Abstract]  
Grant and Licensing Revenues

10. Grant and Licensing Revenues

In June 2016, Pelican entered into a cancer research grant contract or 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 period from June 1, 2016 through November 30, 2019, as amended.

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 approximately $0.7 million and $0.8 million during the three months ended March 31, 2019 and 2018, respectively.  As of March 31, 2019, the Company had deferred revenue of $0.5 million for proceeds received but for which the costs had not been incurred or the conditions of the award had not been met.