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Revenue Recognition (Tables)
 9 Months Ended
Sep. 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 September 30, 2018
 
Three months ended September 30, 2017
(in thousands)
Performance Enzymes
 
Novel Biotherapeutics
 
Total
 
Performance Enzymes
 
Novel Biotherapeutics
 
Total
Major products and service:
 
 
 
 
 
 
 
 
 
 
 
       Product Revenue
$
8,405

 
$
—

 
$
8,405

 
$
6,948

 
$
—

 
$
6,948

Research and development revenue
3,720

 
4,821

 
8,541

 
3,036

 
—

 
3,036

Total revenues
$
12,125

 
$
4,821

 
$
16,946

 
$
9,984

 
$
—

 
$
9,984

 
 
 
 
 
 
 
 
 
 
 
 
Primary geographical markets:
 
 
 
 
 
 
 
 
 
 
 
Americas
$
4,315

 
$
—

 
$
4,315

 
$
3,606

 
$
—

 
$
3,606

EMEA
1,453

 
4,821

 
6,274

 
3,415

 
—

 
3,415

APAC
6,357

 
—

 
6,357

 
2,963

 
—

 
2,963

Total revenues
$
12,125

 
$
4,821

 
$
16,946

 
$
9,984

 
$
—

 
$
9,984

 
Nine months ended September 30, 2018
 
Nine months ended September 30, 2017
(in thousands)
Performance Enzymes
 
Novel Biotherapeutics
 
Total
 
Performance Enzymes
 
Novel Biotherapeutics
 
Total
Major products and service:
 
 
 
 
 
 
 
 
 
 
 
       Product Revenue
$
18,291

 
$
—

 
$
18,291

 
$
19,134

 
$
—

 
$
19,134

Research and development revenue
15,728

 
10,507

 
26,235

 
9,167

 
—

 
9,167

Total revenues
$
34,019

 
$
10,507

 
$
44,526

 
$
28,301

 
$
—

 
$
28,301

 
 
 
 
 
 
 
 
 
 
 
 
Primary geographical markets:
 
 
 
 
 
 
 
 
 
 
 
Americas
$
13,968

 
$
—

 
$
13,968

 
$
9,795

 
$
—

 
$
9,795

EMEA
4,568

 
10,507

 
15,075

 
8,581

 
—

 
8,581

APAC
15,483

 
—

 
15,483

 
9,925

 
—

 
9,925

Total revenues
$
34,019

 
$
10,507

 
$
44,526

 
$
28,301

 
$
—

 
$
28,301
Contract with customer
The following table presents changes in the contract assets, deferred contract costs, and liabilities (in thousands):
 
As of September 30, 2018
 
January 1, 2018 balance
 
Additions
 
Deductions (1)
 
Ending balance
Contract Assets
$
—

 
$
3,953

 
$
(2,085
)
 
$
1,868

Contract Costs
239

 
—

 
(176
)
 
63

Contract Liabilities: Deferred Revenue
18,966

 
6,446

 
(16,728
)
 
8,684

(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.
During the three and nine months ended September 30, 2018, we recognized the following revenues (in thousands):
Revenue recognized in the period from:
Three months ended September 30, 2018
 
Nine months ended September 30, 2018
Amounts included in contract liabilities at the beginning of the period:
 
 
 
     Performance obligations satisfied
$
4,052

 
$
12,873

Changes in the period:
 
 
 
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods
(229
)
 
(165
)
Performance obligations satisfied from new activities in the period - contract revenue
13,123

 
31,818

Total revenue
$
16,946

 
$
44,526

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
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. 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, 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
$
—

 
$
—

 
$
2,784

 
$
1,623

 
$
4,407

Research and development revenue
3,952

 
325

 
—

 
—

 
4,277

Total
$
3,952

 
$
325

 
$
2,784

 
$
1,623

 
$
8,684
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 September 30, 2018
 
Nine months ended September 30, 2018
 
As reported
 
Adjustments
 
Balances without adoption of Topic 606
 
As reported
 
Adjustments
 
Balances without adoption of Topic 606
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Product revenue
$
8,405

 
$
(2,935
)
 
$
5,470

 
$
18,291

 
$
(5,904
)
 
$
12,387

Research and development revenue
8,541

 
1,975

 
10,516

 
26,235

 
(496
)
 
25,739

Total revenues
16,946

 
(960
)
 
15,986

 
44,526

 
(6,400
)
 
38,126

Costs and operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of product revenue
3,791

 
(441
)
 
3,350

 
10,228

 
(1,796
)
 
8,432

Research and development
7,917

 
(96
)
 
7,821

 
22,464

 
(176
)
 
22,288

Selling, general and administrative
7,344

 
—

 
7,344

 
22,485

 
—

 
22,485

Total costs and operating expenses
19,052

 
(537
)
 
18,515

 
55,177

 
(1,972
)
 
53,205

Loss from operations
(2,106
)
 
(423
)
 
(2,529
)
 
(10,651
)
 
(4,428
)
 
(15,079
)
Interest income
199

 
—

 
199

 
444

 
—

 
444

Other expenses
(80
)
 
—

 
(80
)
 
(221
)
 
—

 
(221
)
Loss before income taxes
(1,987
)
 
(423
)
 
(2,410
)
 
(10,428
)
 
(4,428
)
 
(14,856
)
Provision for (benefit from) income taxes
1

 
—

 
1

 
(11
)
 
—

 
(11
)
Net loss
$
(1,988
)
 
$
(423
)
 
$
(2,411
)
 
$
(10,417
)
 
$
(4,428
)
 
$
(14,845
)
 


 
 
 
 
 
 
 
 
 
 
Net loss per share, basic and diluted
$
(0.04
)
 
$
—

 
$
(0.04
)
 
$
(0.20
)
 
$
(0.09
)
 
$
(0.29
)
Weighted average common shares used in computing net loss per share, basic and diluted
53,597

 
 
 
53,597

 
51,609

 
 
 
51,609



 
As of September 30, 2018
 
As reported

Adjustments
 
Balances without adoption of Topic 606
Assets



 

Accounts Receivable
$
9,308


$
(1,860
)

$
7,448

Contract Assets
1,868

 
(1,868
)
 
—

Inventory
830

 
116

 
946

Other non-current assets
304


(63
)

241

Liabilities





Other accrued liabilities
5,933


(1,916
)

4,017

Deferred revenue - current
4,253


(655
)

3,598

Deferred revenue - non-current
4,431


(734
)

3,697

Stockholders' equity








Accumulated deficit
(330,014
)

(369
)

(330,383
)