Company: ABUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001447028-25-000115
Chunk: 35

Company: Arbutus Biopharma Corp
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 to be variable consideration subject to constraint at inception. At the end of each subsequent reporting period, the Company reevaluated the probability of achievement of the future development, regulatory, and sales milestones subject to constraint and, if necessary, adjusted its estimate of the overall transaction price. Any such adjustments were recorded on a cumulative catch-up basis, which affect revenues and earnings in the period of adjustment. The following table outlines the transaction price and the changes to the related liability balance:Transaction PriceCumulative Collaboration Revenue RecognizedDeferred License Revenue(in thousands)Combined performance obligation$50,445 $50,445 $— Less contract asset— Total deferred license revenue$— Due to the conclusion of the strategic partnership with Qilu, the Company recognized the remainder of the $9.6 million of deferred revenue during the three months ended June 30, 2025. The Company also recognized $0.5 million of revenue based on labor hours expended by the Company on its Manufacturing Obligations during the six months ended June 30, 2025. The Company recognized $0.5 million and $0.8 million during the three and six months ended June 30, 2024, respectively, related to labor hours expended.The Company incurred $0.6 million of incremental costs in obtaining the Qilu License Agreement, which was capitalized in other current assets and other assets and amortized as a component of general and administrative expense commensurate with the recognition of the combined performance obligation. During the three months ended June 30, 2025, the Company recognized the $0.1 million remaining amortization expense, for a total amortization expense for the six months ended June 30, 2025 of $0.2 million. The Company recognized amortization expense of less than $0.1 million for both the three and six months ended June 30, 2024. Until the conclusion of the strategic partnership with Qilu, the Company reevaluated the transaction price and the total estimated labor hours expected to be incurred to satisfy the performance obligations and adjusted the deferred revenue at the end of each reporting period, which resulted in changes to the amount of collaboration revenue recognized and deferred revenue.Barinthus Biotherapeutics plcIn July 2021, the Company entered into a clinical collaboration agreement with Barinthus Biotherapeutics plc (Barinthus), formerly Vaccitech plc, to evaluate imdusiran followed by Barinthus’ VTP-300, an HBV immunotherapy, and