This excerpt taken from the CTCH 20-F filed Jun 16, 2005.
Research and Development, Net. Research and development expenses decreased 32% from $2.2 million in 2002 to $1.5 million in 2003 due to a decrease in personnel. In 2003 and 2002, we received royaltybearing grants totaling zero and $0.2 million, respectively, from the Israeli government, which were recorded as a reduction of research and development costs. The Israeli government requires beneficiaries of such grants to pay royalties to the Israeli government based on the revenues derived from the sale of products, technologies and services developed with such grants.