Revenue and Payments - The company received a non-refundable upfront payment of $2.5 million in 2019 under the EF License Agreement and is eligible for milestone payments of up to $16 million based on regulatory achievements [874]. - As of December 31, 2023, the company had long-term deferred revenues of $2.5 million related to the Nolazol product candidate, which will be recognized upon completion of development services and regulatory approval in Latin America [874]. - The EF License Agreement with Eurofarma will be terminated effective September 30, 2024, with the company recognizing $2.5 million as other income due to this termination [875]. - The company’s revenue recognition follows ASC 606, which requires the identification of promised goods or services and the measurement of transaction prices [872]. Pension and Tax Liabilities - As of December 31, 2024, the company has no net pension-related liability or associated pension expense recognized on its balance sheet, as all obligations related to the prior pension plan have been settled [876]. - The company incurs tax loss carryforwards generating deferred tax assets, but a full valuation allowance is recognized as it is not likely that the tax benefits can be realized [877]. - The company has a single fully insured collective pension plan, with no active employees participating as of December 31, 2024 [876]. Foreign Currency Exposure - Approximately 59.3% of the company's expenses for the year ended December 31, 2024, were denominated in CHF, 6.4% in EUR, and 0.1% in GBP, indicating significant foreign currency exposure [865]. - Changes of 5.0% and 10.0% in the U.S. dollar/CHF exchange rate would have increased/decreased operating expenses by 3.0% and 6.0%, respectively [865]. - The company does not hedge its foreign currency exchange risk but may consider formal currency hedging transactions in the future [867].
NLS Pharmaceutics .(NLSP) - 2024 Q4 - Annual Report