Wednesday, February 12, 2014 9:17:03 AM
DARPA recently informed us that due to budget restrictions within the Department of Defense, that they planned to reduce the scope of our contract in years three through five of the contract. The reduction in scope will focus our research on exosomes, viruses and blood processing instrumentation. This scope reduction will reduce the possible payments under the contract by $858,491 over years three through five. While this contract change is not yet in place, we expect it to occur in the near future. We recently completed a rebudgeting of the expected costs on the remaining years of the DARPA contract based on the reduced milestones and have concluded that the reductions in our costs due to the scaled back level of work will almost entirely offset the anticipated revenue levels based on current assumptions. On February 10, 2014, DARPA finalized this contract modification.
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