How many lawyers do I know? Enough!
Sounds like perhaps they identified it was a requirement to disclose, but unless there is something else untoward there or there is some nasty stigma associated with disclosure, surely this one isn't a material issue.
No doubt the lawyers retuned the balance in the contract in their favour, as is their way. I trust that has not been too obnoxious. I am doubtful there are material risks around liability given the nature of the device but who know what people can cook up if they let their imagination run wild.
I would have expected the key area of negotiation to be around the commercial terms, given some of the funding complexities. By the time it gets to the lawyers for their DD, I would expect that settled.
Eagerly looking forward to news of progress here.
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