Revenue Recognition

9 Months Ended

Sep. 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 September 30, 2020						Three months ended September 30, 2019
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product Revenue	$	8,401	$	—	$	8,401	$	10,351	$	—	$	10,351
Research and development revenue	4,604		5,380		9,984		10,073		1,482		11,555
Total revenues	$	13,005	$	5,380	$	18,385	$	20,424	$	1,482	$	21,906
Primary geographical markets:
Americas	$	3,209	$	2,632	$	5,841	$	2,706	$	—	$	2,706
EMEA	2,141		2,748		4,889		10,723		1,482		12,205
APAC	7,655		—		7,655		6,995		—		6,995
Total revenues	$	13,005	$	5,380	$	18,385	$	20,424	$	1,482	$	21,906

	Nine months ended September 30, 2020						Nine months ended September 30, 2019
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	18,005	$	—	$	18,005	$	24,588	$	—	$	24,588
Research and development revenue	13,380		16,638		30,018		16,512		8,708		25,220
Total revenues	$	31,385	$	16,638	$	48,023	$	41,100	$	8,708	$	49,808
Primary geographical markets:
Americas	$	7,381	$	10,591	$	17,972	$	9,620	$	—	$	9,620
EMEA	8,128		6,047		14,175		15,964		8,708		24,672
APAC	15,876		—		15,876		15,516		—		15,516
Total revenues	$	31,385	$	16,638	$	48,023	$	41,100	$	8,708	$	49,808

Contract Balances

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

	September 30, 2020		December 31, 2019
Contract Assets	$	975	$	1,027
Unbilled receivables	$	14,985	$	10,099
Contract Costs	$	130	$	—
Contract Liabilities: Deferred Revenue	$	4,056	$	2,044

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

During the nine months ended September 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 nine months ended September 30, 2020 and 2019, we recognized the following revenues (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Amounts included in contract liabilities at the beginning of the period:
Performance obligations satisfied	$	708	$	5,092	$	58	$	4,948
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	233		2,641		854		2,460
Performance obligations satisfied from new activities in the period - contract revenue	17,444		14,173		47,111		42,400
Total revenues	$	18,385	$	21,906	$	48,023	$	49,808

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 September 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	$	—	$	364	$	1,623	$	1,987
Research and development revenue	558		1,012		499		2,069
Total revenues	$	558	$	1,376	$	2,122	$	4,056