4. GOVERNMENT GRANT

In July 2021, we were awarded a grant from the National Institute on Drug Abuse, or NIDA, of the National Institutes of Health, or NIH, to evaluate the use of cytisinicline as a treatment for cessation of nicotine e-cigarette use. This initial grant award, in the amount of $0.3 million, commenced on August 1, 2021, and is being utilized to complete critical regulatory and clinical operational activities, such as protocol finalization, clinical trial site identification, drug packaging, and submission of a new Investigational New Drug Application, or IND, to the U.S. Food and Drug Administration, or FDA, for investigating cytisinicline in nicotine e-cigarette users.

For the year ended December 31, 2021 we incurred $0.3 million in qualifying R&D expenditures under the NIH grant which has been recorded as a reduction in R&D expense. As of December 31, 2021 we had $0.2 million in grant receivable related to the NIH grant.