Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.20.2
Revenue Recognition
9 Months Ended
Sep. 30, 2020
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 September 30, 2020 Three months ended September 30, 2019
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
Major products and service:
       Product Revenue $ 8,401  $ —  $ 8,401  $ 10,351  $ —  $ 10,351 
Research and development revenue 4,604  5,380  9,984  10,073  1,482  11,555 
Total revenues $ 13,005  $ 5,380  $ 18,385  $ 20,424  $ 1,482  $ 21,906 
Primary geographical markets:
Americas
$ 3,209  $ 2,632  $ 5,841  $ 2,706  $ —  $ 2,706 
EMEA
2,141  2,748  4,889  10,723  1,482  12,205 
APAC
7,655  —  7,655  6,995  —  6,995 
Total revenues $ 13,005  $ 5,380  $ 18,385  $ 20,424  $ 1,482  $ 21,906 
Nine months ended September 30, 2020 Nine months ended September 30, 2019
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
Major products and service:
Product revenue $ 18,005  $ —  $ 18,005  $ 24,588  $ —  $ 24,588 
Research and development revenue 13,380  16,638  30,018  16,512  8,708  25,220 
Total revenues $ 31,385  $ 16,638  $ 48,023  $ 41,100  $ 8,708  $ 49,808 
Primary geographical markets:
Americas $ 7,381  $ 10,591  $ 17,972  $ 9,620  $ —  $ 9,620 
EMEA 8,128  6,047  14,175  15,964  8,708  24,672 
APAC 15,876  —  15,876  15,516  —  15,516 
Total revenues $ 31,385  $ 16,638  $ 48,023  $ 41,100  $ 8,708  $ 49,808 

Contract Balances
The following table presents balances of contract assets, unbilled receivables, contract costs, and contract liabilities (in thousands):
September 30, 2020 December 31, 2019
Contract Assets $ 975  $ 1,027 
Unbilled receivables $ 14,985  $ 10,099 
Contract Costs $ 130  $ — 
Contract Liabilities: Deferred Revenue $ 4,056  $ 2,044 

We had no asset impairment charges related to contract assets in the three and nine months ended September 30, 2020 and 2019.
During the nine months ended September 30, 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.
During the three and nine months ended September 30, 2020 and 2019, we recognized the following revenues (in thousands):
Three months ended September 30, Nine months ended September 30,
2020 2019 2020 2019
Amounts included in contract liabilities at the beginning of the period:
     Performance obligations satisfied $ 708  $ 5,092  $ 58  $ 4,948 
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods 233  2,641  854  2,460 
Performance obligations satisfied from new activities in the period - contract revenue 17,444  14,173  47,111  42,400 
Total revenues $ 18,385  $ 21,906  $ 48,023  $ 49,808 

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 September 30, 2020.
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 (in thousands):
Remainder of 2020 2021 2022 and Thereafter Total
Product Revenue $ —  $ 364  $ 1,623  $ 1,987 
Research and development revenue 558  1,012  499  2,069 
Total revenues $ 558  $ 1,376  $ 2,122  $ 4,056