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Research Grants | 6 Months Ended
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Jun. 30, 2026
Research Grants |
Research Grants |
3. | Research Grants
During the course of its business, the Company applies for research grants with public or private organizations to fund its research projects. Under the terms of these grants, the Company receives an upfront payment or is entitled to receive reimbursement of its allowable direct research expenses. In March 2023, the Company’s wholly owned subsidiary, GT Gain Therapeutics SA, announced that Eurostars and Innosuisse awarded a grant in the aggregate amount of $1.3 million to a consortium led by Gain Therapeutics that also includes the Institute for Research in Biomedicine, Newcells Biotech and the University of Helsinki. The grant was intended to support the development of the Company’s alpha-1 antitrypsin deficiency program. The portion of the grant that was allocated to the Company was $0.45 million. In June 2025, the grant was terminated due to the dissolution of the consortium. The remaining unused portion of the grant awarded of $0.21 million was repaid as of September 30, 2025. In May 2023, the Company’s wholly owned subsidiary, GT Gain Therapeutics SA, announced that Innosuisse awarded the Company a grant under the Swiss Accelerator program in the amount of $2.8 million to support further development activities of Gain Therapeutics’ lead program GBA1 Parkinson’s disease. In December 2024, the parties to the grant entered into an amendment to the funding agreement whereby the grant amount was amended to approximately $2.0 million due to changes in project scope. There is no impact to the Condensed Consolidated Statements of Operations or Condensed Consolidated Balance Sheets due to this amendment. The funding under the grant awarded by Innosuisse under the Swiss Accelerator program concluded in April 2026. In connection with the grant announced in May 2023 the Company recorded a reduction to research and development expenses of $2 thousand and $309 thousand during the three months ended June 30, 2026 and 2025, respectively, and $16 thousand and $503 thousand during the six months ended June 30, 2026 and 2025, respectively. The Company recorded grant-related receivables of $449 thousand and $442 thousand as of June 30, 2026 and December 31, 2025, respectively. In the second quarter of fiscal year 2023, the Company’s wholly owned subsidiary, Gain Therapeutics Australia started the Phase 1 Clinical Trial for its lead program in Parkinson’s disease in Australia. The Australian government sponsors the Research and Development Tax Incentive (“R&DTI”) program which offers a tax credit for companies conducting eligible research and development activities. The R&DTI program provides for a cash refund based on a percentage of eligible research and development activities undertaken in Australia by Gain Therapeutics Australia. The Company recorded a reduction to research and development expenses of $0.2 million during the three months ended June 30, 2026 and 2025, and $0.4 million during the six months ended June 30, 2026 and 2025, related to the R&DTI program. The corresponding receivable was recorded within Other Current Assets (see Note 5).

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