REVENUE RECOGNITION (Notes)

3 Months Ended

Mar. 31, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition, Deferred Revenue [Policy Text Block]

NOTE 11 — REVENUE RECOGNITION

The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606 “Revenue from Contracts with Customers” (the Standard), the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of the Standard, the Company assesses the goods or services promised within each contract, identifies the performance obligations and assesses whether each promised good or service is distinct. The Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling price of the promised good or service underlying each performance obligation and recognizes this as revenue when such performance obligation is satisfied.

US Government Contracts

In March 2020, the Biomedical Advanced Research and Development Authority (BARDA) awarded the Company two milestone-based contracts, with a value of $642,450 each, funding approximately 36% of the expected overall cost of development. BARDA is part of the U.S. Department of Health and Human Services and is tasked with protecting the U.S. against emerging infectious diseases and other threats. Through public-private partnerships, BARDA supports the development of vaccines, drugs, and diagnostics. One of BARDA’s current goals is to develop medical countermeasures to enhance health security and protect against 2019 novel coronavirus infections (COVID-19). The Company’s management believes these two contracts help to enable an expansion of the Company’s current portfolio of diagnostics for SARS-COV-2. The Company recorded government contract revenue of $642,450 for the quarter ended March 31, 2020 as all of the milestones were completed for the first BARDA contract.

Contract assets are included within accounts receivables, net and contract liabilities are included in deferred revenue on the Company’s Condensed Consolidated Balance Sheets. The following table presents the opening and closing balances of the Company’s contract assets and liabilities as of March 31, 2020 (in thousands):

	Balance as of March 31, 2020		Balance as of December 31, 2019
Contract assets:
Unbilled receivables - Royalties	$	13,655	$	12,257
Unbilled receivables - Other	642		—
Total contract assets	$	14,297	$	12,257
Contract liabilities - Short-term:
Deferred revenue - Service	$	8,761	$	7,771
Deferred revenue - Licenses	202		207
Deferred revenue - Instruments	5		2
Deferred revenue - Other	115		234
Total contract liabilities - Short-term	$	9,083	$	8,214
Contract liabilities - Long-term:
Deferred revenue - Service	$	990	$	968
Deferred revenue - Licenses	616		665
Total contract liabilities - Long-term	$	1,606	$	1,633

During the three months ended March 31, 2020, the Company recognized the following revenues as a result of changes in the contract asset and contract liability balances in the period (in thousands):

	Three Months Ended March 31, 2020
Revenue recognized in the period:
Amounts included as contract liabilities at the beginning of the period	$	2,738
Performance obligations satisfied in previous periods	-