RGRX Regenerx Biopharmaceuticals Dashboard

Management Discussion

• Revenues. For the year ended December 31, 2020, we recorded revenue in the amount of approximately $77,000 versus $77,000 recorded for the year ended December 31, 2019. The revenue reflects the amortization over 30 years of the payments we received under the original joint venture license agreement and the payment we received for the expansion of the territorial rights to include Canada in April 2016. The payments received under the 2017 RGN-137 license amendment were amortized for revenue over 23 years.
• Expenses — Research and development. For the year ended December 31, 2020, our R&D expenditures decreased by $60,000, or 92%, to $5,000, from approximately $65,000 in 2019. The limited R&D expenditures reflects the shift of our internal R&D efforts as our partners assume full responsibility for clinical development. The decrease in 2020 results from the classification of stock option compensation expense in G&A to more accurately reflect the Company’s current operations versus 2019. We expect our R&D expenses will remain at low levels unless we decide to reinitiate internal R&D efforts for our unpartnered programs.
• Expenses — General and administrative. For the year ended December 31, 2020, our G&A expenses increased by approximately $93,000, or 7%, to $1,366,000 from $1,274,000 in 2019. Increases are reflected in 2020 expenses for personnel and related (increase of $39,000) and stock option compensation expense (increase of $125,000) , These increases were partially offset by decreases in professional fees (decrease of $7,000), insurance (decrease of $13,000), sponsorship (decrease of $5,000), travel (decrease of $9,000), investor relations (decrease of $25,000), facility and related (decrease of $4,000), license fees (decrease of $2,000) and other (decrease of $6,000). We believe that our G&A expenses will remain at current levels as we wait for data from the upcoming clinical trials being conducted by our partners. If we enter into additional partnerships or other business transactions, including financings, we will incur additional legal and transaction related expenses.