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Revenue Recognition (Tables)
 6 Months Ended
Jun. 30, 2018
Revenue from Contract with Customer [Abstract]  
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, Latin America), EMEA (Europe, Middle East, Africa), and APAC (Australia, New Zealand, Southeast Asia, China).
 
Three months ended June 30, 2018
 
Three months ended June 30, 2017
(in thousands)
Performance Enzymes
 
Novel Biotherapeutics
 
Total
 
Performance Enzymes
 
Novel Biotherapeutics
 
Total
Major products and service:
 
 
 
 
 
 
 
 
 
 
 
       Product Revenue
$
3,723

 
$
—

 
$
3,723

 
$
6,600

 
$
—

 
$
6,600

       Research and development revenue
7,442

 
2,373

 
9,815

 
3,747

 
—

 
3,747

Total revenues
$
11,165

 
$
2,373

 
$
13,538

 
$
10,347

 
$
—

 
$
10,347

 
 
 
 
 
 
 
 
 
 
 
 
Primary geographical markets:
 
 
 
 
 
 
 
 
 
 
 
Americas
$
6,058

 
$
—

 
$
6,058

 
$
4,401

 
$
—

 
$
4,401

EMEA
1,435

 
2,373

 
3,808

 
1,959

 
—

 
1,959

APAC
3,672

 
—

 
3,672

 
3,987

 
—

 
3,987

Total revenues
$
11,165

 
$
2,373

 
$
13,538

 
$
10,347

 
$
—

 
$
10,347

 
Six months ended June 30, 2018
 
Six months ended June 30, 2017
(in thousands)
Performance Enzymes
 
Novel Biotherapeutics
 
Total
 
Performance Enzymes
 
Novel Biotherapeutics
 
Total
Major products and service:
 
 
 
 
 
 
 
 
 
 
 
       Product Revenue
$
9,886

 
$
—

 
$
9,886

 
$
12,186

 
$
—

 
$
12,186

       Research and development revenue
12,008

 
5,686

 
17,694

 
6,131

 
—

 
6,131

Total revenues
$
21,894

 
$
5,686

 
$
27,580

 
$
18,317

 
$
—

 
$
18,317

 
 
 
 
 
 
 
 
 
 
 
 
Primary geographical markets:
 
 
 
 
 
 
 
 
 
 
 
Americas
$
9,655

 
$
—

 
$
9,655

 
$
6,189

 
$
—

 
$
6,189

EMEA
3,114

 
5,686

 
8,800

 
5,166

 
—

 
5,166

APAC
9,125

 
—

 
9,125

 
6,962

 
—

 
6,962

Total revenues
$
21,894

 
$
5,686

 
$
27,580

 
$
18,317

 
$
—

 
$
18,317
Contract with customer
The following table presents changes in the contract assets, deferred contract costs, and liabilities (in thousands):
 
June 30, 2018
 
January 1, 2018 balance
 
Additions
 
Deductions (1)
 
Ending balance
Contract Assets
$
—

 
$
3,047

 
$
(2,493
)
 
$
554

Contract Costs
239

 
—

 
(80
)
 
159

Contract Liabilities: Deferred Revenue
18,966

 
1,965

 
(11,477
)
 
9,454

(1) The asset or liability balances are presented as a net position per contract and accordingly the deductions column includes the netting effect of presenting each contract on a net position basis as either a net liability or asset.
The following table shows the reconciliation of contract liabilities from what was disclosed in the Form 10-K for the year ended December 31, 2017 and gives effect to the modified retrospective adoption of the revenue guidance on January 1, 2018 (in thousands):
 
Balance
Deferred Revenue, balance at December 31, 2017
$
13,793

Changes in estimated consideration
—

Unsatisfied performance obligations
$
5,173

Deferred Revenue, balance at January 1, 2018
$
18,966

During the three and six months ended June 30, 2018, we recognized the following revenues (in thousands):
Revenue recognized in the period from:
Three months ended June 30, 2018
 
Six months ended June 30, 2018
Amounts included in contract liabilities at the beginning of the period:
 
 
 
     Performance obligations satisfied
$
2,994

 
$
8,822

Changes in the period:
 
 
 
     Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods
64

 
64

     Performance obligations satisfied from new activities in the period - contract revenue
10,480

 
18,694

Total revenue
$
13,538

 
$
27,580
Performance obligation, expected timing of satisfaction
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 period, in thousands. 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 June 30, 2018. We did not recognize any revenue from performance obligations satisfied in previous periods.

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)
2018
 
2019
 
2020
 
2021 and Thereafter
 
Total
Product Revenue
$
664

 
$
2,753

 
$
2,183

 
$
1,623

 
$
7,223

Research and development revenue
1,756

 
475

 
—

 
—

 
2,231

Total
$
2,420

 
$
3,228

 
$
2,183

 
$
1,623

 
$
9,454
Impact of adoption on financial statements
In accordance with Topic 606, the disclosure of the impact of adoption to our unaudited condensed consolidated statements of operations and balance sheets was as follows (in thousands, except per share amounts):
 
Three months ended June 30, 2018
 
Six months ended June 30, 2018
 
As reported
 
Adjustments
 
Balances without adoption of Topic 606
 
As reported
 
Adjustments
 
Balances without adoption of Topic 606
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Product revenue
$
3,723

 
$
(454
)
 
$
3,269

 
$
9,886

 
$
(2,970
)
 
$
6,916

Research and development revenue
9,815

 
(1,148
)
 
8,667

 
17,694

 
(2,470
)
 
15,224

Total revenues
13,538

 
(1,602
)
 
11,936

 
27,580

 
(5,440
)
 
22,140

Costs and operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of product revenue
2,611

 
(69
)
 
2,542

 
6,436

 
(1,355
)
 
5,081

Research and development
7,370

 
(33
)
 
7,337

 
14,548

 
(80
)
 
14,468

Selling, general and administrative
7,395

 
—

 
7,395

 
15,141

 
—

 
15,141

Total costs and operating expenses
17,376

 
(102
)
 
17,274

 
36,125

 
(1,435
)
 
34,690

Loss from operations
(3,838
)
 
(1,500
)
 
(5,338
)
 
(8,545
)
 
(4,005
)
 
(12,550
)
Interest income
174

 
—

 
174

 
245

 
—

 
245

Other expenses
(82
)
 
—

 
(82
)
 
(142
)
 
—

 
(142
)
Loss before income taxes
(3,746
)
 
(1,500
)
 
(5,246
)
 
(8,442
)
 
(4,005
)
 
(12,447
)
Provision (benefit) from income taxes
(11
)
 
—

 
(11
)
 
(13
)
 
—

 
(13
)
Net loss
$
(3,735
)
 
$
(1,500
)
 
$
(5,235
)
 
$
(8,429
)
 
$
(4,005
)
 
$
(12,434
)
 


 
 
 
 
 
 
 
 
 
 
Net loss per share, basic and diluted
$
(0.07
)
 
$
(0.03
)
 
$
(0.10
)
 
$
(0.17
)
 
$
(0.08
)
 
$
(0.25
)
Weighted average common shares used in computing net loss per share, basic and diluted
52,787

 
 
 
52,787

 
50,598

 
 
 
50,598



 
June 30, 2018
 
As reported

Adjustments
 
Balances without adoption of Topic 606
Assets



 

Accounts Receivable
$
9,910


$
(1,136
)

$
8,774

Contract Assets
554

 
(554
)
 
—

Other non-current assets
414


(159
)

255

Liabilities





Other accrued liabilities
5,051


(1,591
)

3,460

Deferred revenue - current
4,460


2,909


7,369

Deferred revenue - non-current
4,994


(3,220
)

1,774

Stockholders' equity








Accumulated deficit
(328,026
)

55


(327,971
)