Note 3 — Revenue Recognition

We believe recognizing revenue as research and development services are performed provides a faithful depiction of the transfer of the services because completion of clinical programs results in data useful to determine satisfaction of our promise. We may fund research and development in advance of the performance of the services. When we complete our performance obligation, if we have received more than we incurred, we are obligated to return unused advance funding. We recognize these advance payments as deferred revenue until we perform the related services.

Our revenue for the three and nine months ended September 30, 2018 was affected by adopting ASC 606 as follows (in thousands):

	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
Research and development revenue using guidance in effect prior to ASC 606	$	(872	)	$	(2,206	)
Impact of adoption of ASC 606		9,598			19,197
Research and development revenue	$	8,726		$	16,991

License revenue using guidance in effect prior to ASC 606	$	4,954		$	12,901
Impact of adoption of ASC 606		(3,039	)		(7,768	)
License revenue	$	1,915		$	5,133

The impact of adoption of ASC 606 on our net loss per share was as follows (in thousands):

	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
Net loss per share using guidance in effect prior to ASC 606	$	(0.52	)	$	(1.68	)
Impact of adoption of ASC 606		0.12			0.21
Net loss per share	$	(0.40	)	$	(1.47	)

We have completed our performance obligations for the Co-Invest Option and the 2014 Astellas agreement. We expect to complete our performance obligations for the 2016 Astellas Amendment in 2019. Our contract assets and liabilities changed during the period, as follows (in thousands):

	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
Contract liability from the Amgen Agreement for the Co-Invest Option
Balance at beginning of period	$	6,250		$	18,750
Payments made for the Co-Invest Option		(6,250	)		(18,750	)
Balance at end of period	$	—		$	—

Contract asset from the 2016 Astellas Amendment
Balance at beginning of period	$	10,375		$	19,413
Reduction for services performed		(5,562	)		(12,865	)
Cash received in advance of services performed		1,063			(672	)
Balance at end of period	$	5,876		$	5,876

Contract liability from the 2014 Astellas Amendment
Balance at beginning of period	$	1,882		$	6,288
Reduction for services performed		(1,882	)		(6,288	)
Balance at end of period	$	—		$	—