Claritas Pharmaceuticals Inc V.CLAS.H

Historical or Hysterical Info

[Red~One]

Regarding the latest NR in respect to the mention of the Barda Grant ..........................On May 19, 2020, Kalytera announced that it had signed a Letter of Intent dated May 12, 2020 (the “LOI”) to acquire Salzman Group. At that time, a valuable asset of Salzman Group was its contract with the Biomedical Advanced Research and Development Authority (BARDA), a division of the U.S. Department of Health and Human Services. Under this contract, BARDA awarded Salzman Group USD $15.9 million to develop R-107 as a treatment for chlorine inhalation lung injury (“CILI”). An additional USD $69.9 million could have been released to Salzman Group over the next 36 months, as developmental milestones were achieved. Under GAAP, these U.S. government funds would have been recognized as contract revenues when received over that period, and it was anticipated that Salzman Group would recognize net operating profits of approximately USD $1.4 million per year from these contract revenues. However, on September 16, 2020, Salzman Group was informed that BARDA was terminating the BARDA Contract and diverting its funding under the BARDA Contract, and all similar contracts, to support projects for prevention of COVID-19 infection. The Company was not informed directly of this from BARDA, but learned about this afterward from Salzman Group.