Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.21.1
Revenue Recognition
3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue
The following table provides information about disaggregated revenue from contracts with customers into the nature of the products and services, and geographic regions, and includes a reconciliation of the disaggregated revenue with reportable segments. The geographic regions that are tracked are the Americas (United States, Canada, and Latin America), EMEA (Europe, Middle East, and Africa), and APAC (Australia, New Zealand, Southeast Asia, and China).
Segment information is as follows (in thousands):
Three months ended March 31, 2021 Three months ended March 31, 2020
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
Major products and service:
       Product Revenue $ 10,226  $ —  $ 10,226  $ 5,100  $ —  $ 5,100 
Research and development revenue 4,003  3,803  7,806  5,774  3,796  9,570 
Total revenues $ 14,229  $ 3,803  $ 18,032  $ 10,874  $ 3,796  $ 14,670 
Primary geographical markets:
Americas
$ 2,871  $ 2,058  $ 4,929  $ 2,999  $ 2,226  $ 5,225 
EMEA
4,537  1,745  6,282  4,401  1,570  5,971 
APAC
6,821  —  6,821  3,474  —  3,474 
Total revenues $ 14,229  $ 3,803  $ 18,032  $ 10,874  $ 3,796  $ 14,670 

Contract Balances
The following table presents balances of contract assets, unbilled receivables, contract costs, and contract liabilities (in thousands):
March 31, 2021 December 31, 2020
Contract assets $ 5,143  $ 4,526 
Unbilled receivables $ 11,298  $ 10,942 
Contract costs $ 58  $ 90 
Contract liabilities: deferred revenue $ 4,797  $ 4,791 
We had no asset impairment charges related to contract assets in the three months ended March 31, 2021 and 2020.
During the three months ended March 31, 2021, the increase in contract assets was primarily due to increases in product revenue from contracts subject to over time revenue recognition. The increase in unbilled receivables were primarily due to the timing of billings. The increase in deferred revenue was nominal compared to prior period. During the three months ended March 31, 2020, decreases in contract assets were primarily due to contract assets that were subsequently invoiced as our right to consideration for goods and services became unconditional. Increases in unbilled receivables were primarily due to the timing of billings. The increase in deferred revenue were primarily due to cash advances received in excess of revenue recognized.
We recognized the following revenues (in thousands):
Three months ended March 31,
Revenue recognized in the period for: 2021 2020
Amounts included in contract liabilities at the beginning of the period:
     Performance obligations satisfied $ 862  $ 57 
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods $ 24  $ (643)
Performance obligations satisfied from new activities in the period - contract revenue 17,146  15,256 
Total revenues $ 18,032  $ 14,670 

Performance Obligations
The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting periods. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of March 31, 2021.
The balances in the table below are partially based on judgments involved in estimating future orders from customers subject to the exercise of material rights pursuant to respective contracts as of March 31, 2021 (in thousands):
Remainder of 2021 2022 2023 2024 and Thereafter Total
Product Revenue $ 400  $ 67  $ 431  $ 1,923  $ 2,821 
Research and development revenue 1,430  —  546  —  1,976 
Total revenues $ 1,830  $ 67  $ 977  $ 1,923  $ 4,797