Company: CRVO
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001437749-25-007829
Chunk: 133

Company: CervoMed Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 133
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12-month period. The Vertex Agreement states that royalties will be reduced by 50% during any portion of the royalty term when there is no valid claim of an issued patent within specified patent rights covering the licensed product. The Company also has the right to deduct, on a country by country basis, from royalties otherwise payable to Vertex under the terms of the Vertex Agreement, 50% of all royalties, upfront fees, milestones and other payments paid by the Company or any of the Company’s affiliates or sublicensees to third parties under licenses that are necessary for the development, manufacture, sale or use of a licensed product, provided that in no event will the royalty payable to Vertex be reduced to less than 50% of the rates specified in the Vertex Agreement, subject to certain adjustments specified therein. The Company has made a total of $100,000in payments to Vertex related to the Vertex Agreement. Nopayments were made during the years ended December 31, 2024 and 2023.

National Institute of Aging Grant

In January 2023, the Company was awarded a $21.0million grant from the NIA to support its RewinD-LB Trial, a Phase 2b study of neflamapimod in patients with DLB and, in August 2024, the Company was awarded and additional $0.3million under the grant. The grant monies are expected to be received over a period of three years including $6.7million in 2023, $8.3million in 2024 and $6.2million in 2025.

The total grant revenue recognized from the NIA Grant was $9.7million and $7.1million for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, aggregate total cash funding of $14.6million has been received from the NIA Grant, resulting in approximately $6.6million in funding remaining. In addition, $2.3million has been recorded as a receivable in the consolidated balance sheet at December 31, 2024, for allowable expenses incurred in 2024, which is expected to be received subsequent to December 31, 2024.

The Company received access to the current year 3 funding in the amount of $5.6million in March 2025. This amount was90% of the full year 3 amount provided for in the NIA Grant due to current NIA policy as a