Revenue Recognition

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

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 and Latin America), EMEA (Europe, Middle East and Africa), and APAC (Australia, New Zealand, Southeast Asia and China).

Segment information is as follows (in thousands):

	Three months ended June 30, 2020						Three months ended June 30, 2019
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product Revenue	$	4,504	$	—	$	4,504	$	6,249	$	—	$	6,249
Research and development revenue	3,002		7,461		10,463		4,340		1,730		6,070
Total revenues	$	7,506	$	7,461	$	14,967	$	10,589	$	1,730	$	12,319
Primary geographical markets:
Americas	$	1,173	$	5,733	$	6,906	$	4,076	$	—	$	4,076
EMEA	1,586		1,728		3,314		3,011		1,730		4,741
APAC	4,747		—		4,747		3,502		—		3,502
Total revenues	$	7,506	$	7,461	$	14,967	$	10,589	$	1,730	$	12,319

	Six months ended June 30, 2020						Six months ended June 30, 2019
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	9,604	$	—	$	9,604	$	14,236	$	—	$	14,236
Research and development revenue	8,775		11,258		20,033		6,440		7,225		13,665
Total revenues	$	18,379	$	11,258	$	29,637	$	20,676	$	7,225	$	27,901
Primary geographical markets:
Americas	$	4,171	$	7,960	$	12,131	$	6,913	$	—	$	6,913
EMEA	5,987		3,298		9,285		5,241		7,225		12,466
APAC	8,221		—		8,221		8,522		—		8,522
Total revenues	$	18,379	$	11,258	$	29,637	$	20,676	$	7,225	$	27,901

Contract Balances

The following table presents balances of contract assets, unbilled receivables, contract costs, and contract liabilities (in thousands):

	June 30, 2020		December 31, 2019
Contract Assets	$	—	$	1,027
Unbilled receivables	$	12,412	$	10,099
Contract Costs	$	172	$	—
Contract Liabilities: Deferred Revenue	$	5,045	$	2,044

We had no asset impairment charges related to contract assets in the three and six months ended June 30, 2020 and 2019.

During the six months ended June 30, 2020, decreases in contract assets were primarily due to contract assets that were subsequently invoiced as our right to consideration for goods and services became unconditional. Increases in unbilled receivables were primarily due to the timing of billings. The increase in deferred revenue were primarily due to cash advances received in excess of revenue recognized.

During the three and six months ended June 30, 2020 and 2019, we recognized the following revenues (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Amounts included in contract liabilities at the beginning of the period:
Performance obligations satisfied	$	4,272	$	1,367	$	57	$	3,752
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	1,357		(92)		637		43
Performance obligations satisfied from new activities in the period - contract revenue	9,338		11,044		28,943		24,106
Total revenues	$	14,967	$	12,319	$	29,637	$	27,901

Performance Obligations

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 periods. 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, 2020.

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):

	Remainder of 2020		2021		2022 and Thereafter		Total
Product Revenue	$	567	$	385	$	1,883	$	2,835
Research and development revenue	1,107		624		479		2,210
Total revenues	$	1,674	$	1,009	$	2,362	$	5,045