1)

The Company has a license agreement that earned royalties of approximately $5,000 and $4,000 during the three months ended December 31, 2011 and 2010, respectively. A shareholder of the Company is an officer of the licensee. The Company earned royalties of approximately $17,000 and $10,000 during the six months ended December 31, 2011 and 2010, respectively

2)

During the three and six months ended December 31, 2011, the Company has three services arrangements with the Center for Molecular Biotechnology of Fraunhofer USA, Inc. (“FhCMB”) for research and development.

A)

In 2003, the Company entered into a Technology Transfer Agreement, as amended (“TTA”) which requires FhCMB to provide the Company with research and development services related to the commercialization of the Technology and allows FhCMB to apply the Technology to the development and production of certain vaccines for use in developing countries as defined in the agreement. The most recent amendment to the TTA requires: 1) the Company to make payments to FhCMB of $2,000,000 per year for five years, aggregating $10,000,000, for such services beginning in November 2009; and 2) FhCMB to expend at least equal amounts during the same timeframe for research and development services related to the commercialization of the Technology. Additionally, under the terms of the TTA and for a period of fifteen years: 1) the Company shall pay FhCMB a defined percent (per the agreement) of all receipts derived by the Company from sales of products produced utilizing the Technology and a defined percentage (per the agreement) of all receipts derived by the Company from licensing the Technology to third parties with an overall minimum annual payment of $200,000 beginning with the twelve months ended December 2010; and 2) FhCMB shall pay the Company a defined percentage (per the agreement) of all receipts from sales, licensing, or commercialization of the Technology in developing countries as defined in the agreement. All new IP invented by FhCMB during the period of the TTA is owned by and is required to be transferred to iBio.

B)

In December 2010, the Company and FhCMB entered into a $1,660,000 research services agreement for research for selected targeted gene expressions optimization utilizing the Company’s technology.

C)

In March 2011, the Company and FhCMB entered into a $432,000 research services agreement for research regarding the use of a certain enzyme as a carrier molecule.

Three Months Ended
December 31,

Six Months Ended
December 31,

2011

2010

2011

2010

Research and development expense

$

1,016,000

$

333,000

$

2,388,000

$

333,000

Royalty expense

50,000

50,000

100,000

100,000

As of December
31, 2011

As of June
30, 2011

Prepaid and other current assets

$

942,000

$

760,000

Accounts payable and accrued expenses

3,374,000

2,360,000