Segment, Geographical and Other Revenue Information

Segment Information

As discussed in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies," beginning in 2018, we identified our biotherapeutics business as a standalone business segment. Our two reportable business segments as of January 1, 2018, consisted of Performance Enzymes and Novel Biotherapeutics.

We report corporate-related expenses such as legal, accounting, information technology, and other costs that are not otherwise included in our reportable business segments as "Corporate costs." All items not included in income (loss) from operations are excluded from the business segments.

We manage our assets on a total company basis, not by business segment, as the majority of our operating assets are shared or commingled. Our CODM does not review asset information by business segment in assessing performance or allocating resources, and accordingly, we do not report asset information by business segment.

Performance Enzymes

We initially commercialized our CodeEvolver^® protein engineering technology platform and products in the pharmaceuticals market, and to date this continues to be our largest market served. Our customers, which include many large global pharmaceutical companies, use our technology, products and services in their manufacturing processes and process development. We have also used the technology to develop customized enzymes for use in other industrial markets. These markets consists of several large industrial verticals, including food and food ingredients, animal feed, flavors, fragrances, and agricultural chemicals. We have also used our technology to develop an enzyme for customers using NGS and PCR/qPCR for in vitro molecular diagnostic and molecular biology research applications.

Novel Biotherapeutics

We are also targeting new opportunities in the pharmaceutical industry to discover, improve and/or develop biotherapeutic drug candidates. We believe that our CodeEvolver^® protein engineering platform technology can be used to discover novel biotherapeutic drug candidates that will target human diseases that are in need of improved therapeutic interventions. Similarly, we believe that we can deploy our platform technology to improve specific characteristics of a customer’s pre-existing biotherapeutic drug candidate, such as its activity, stability or immunogenicity. Most notable is our lead program for the potential treatment of PKU in humans. PKU is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient. In October 2017, we announced a strategic collaboration with Nestec Ltd. ("Nestlé Health Science") to advance CDX-6114, our own novel orally administrable enzyme therapeutic candidate for the potential treatment of PKU disease. We have also developed a pipeline of other biotherapeutic drug candidates in which we expect to continue to make additional investments with the aim of advancing additional product candidates targeting other therapeutic areas. For the three months ended March 31, 2018, all revenues related to the Novel Biotherapeutics segment were generated from our collaboration with Nestlé Health Science. There was no revenue related to the Novel Biotherapeutics segment for the three months ended March 31, 2017.

The following table provides financial information by our reportable business segments along with a reconciliation to consolidated loss before income taxes (in thousands):



	Three months ended March 31, 2018								Three months ended March 31, 2017
	Performance Enzymes			Novel Biothera-peutics		Total			Performance Enzymes			Novel Biothera-peutics			Total
Revenues:
Product revenue	$	6,163		$	—	$	6,163		$	5,586		$	—		$	5,586
Research and development revenue	4,566			3,313		7,879			2,385			—			2,385
Total revenues	10,729			3,313		14,042			7,971			—			7,971
Costs and operating expenses:
Cost of product revenue	3,825			—		3,825			3,002			—			3,002
Research and development⁽¹⁾	5,066			1,932		6,998			4,150			1,511			5,661
Selling, general and administrative	2,096			146		2,242			1,812			—			1,812
Total costs and operating expenses	10,987			2,078		13,065			8,964			1,511			10,475
Income (loss) from operations	$	(258	)	$	1,235	$	977		$	(993	)	$	(1,511	)	$	(2,504	)
Corporate costs⁽²⁾						(5,435		)							(4,606		)
Depreciation and amortization						(238		)							(326		)
Loss before income taxes						$	(4,696	)							$	(7,436	)

⁽¹⁾Research and development expenses exclude depreciation and amortization.

⁽²⁾Corporate costs include unallocated selling, general and administrative expense, interest income, and other income and expenses.

The following table provides stock-based compensation expense included in income (loss) from operations by segment (in thousands):



	Three months ended March 31, 2018						Three months ended March 31, 2017
	Performance Enzymes		Novel Biothera-peutics		Total		Performance Enzymes		Novel Biothera-peutics		Total
Stock-based compensation	$	333	$	63	$	396	$	221	$	52	$	273

Significant Customers

Customers that each contributed 10% or more of our total revenues were as follows:



	Percentage of Total Revenues for the
	Three Months Ended March 31,
	2018	2017
Customer A	48%	38%
Customer B	*	20%
Customer C	*	19%
Customer D	24%	*
Customer E	10%	*

Customers that each contributed 10% or more of our total accounts receivable had the following balances as of the periods presented:



	Percentage of Accounts Receivables at
	March 31, 2018	December 31, 2017
Customer A	46%	31%
Customer C	12%	15%
Customer E	*	16%
Customer F	13%	14%

* Less than 10% of the period presented

Geographical Information

Geographic revenues are identified by the location of the customer and consist of the following (in thousands):



	Three Months Ended March 31,
	2018		2017
Revenues
Americas	$	3,597	$	1,788
EMEA	4,992		3,208
APAC	5,453		2,975
Total revenues	$	14,042	$	7,971

Identifiable long-lived assets as follows (in percentage):



Long-lived assets:	March 31, 2018		December 31, 2017
United States	100	%	100	%