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Segment, Geographical and Other Revenue Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment, Geographical and Other Revenue Information Segment, Geographical and Other Revenue Information
Segment Information
We manage our business as two business segments: 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 consist of several large industrial verticals, including food and food ingredients, animal feed, flavors, fragrances, and agricultural chemicals. We also use our technology to develop enzymes 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.
We have also developed a pipeline of other biotherapeutic drug candidates, which are in preclinical development, and in which we expect to continue to make additional investments with the aim of advancing additional product candidates targeting other therapeutic areas. In March 2020 we entered into the Takeda Agreement with Takeda under which we will research and develop protein sequences for use in gene therapy products for certain diseases.
Factors considered in determining the two reportable segments of the Company include the nature of business activities, the management structure directly accountable to our CODM for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors. Our CODM regularly reviews our segments and the approach provided by management for performance evaluation and resource allocation.
Operating expenses that directly support the segment activity are allocated based on segment headcount, revenue contribution or activity of the business units within the segments, based on the corporate activity type provided to the segment. The expense allocation excludes certain corporate costs that are separately managed from the segments. This provides the CODM with more meaningful segment profitability reporting to support operating decisions and allocate resources.
The following tables provide financial information by our reportable business segments along with a reconciliation to consolidated loss before income taxes (in thousands):

Year Ended December 31, 2020Year Ended December 31, 2019
Performance EnzymesNovel BiotherapeuticsTotalPerformance EnzymesNovel BiotherapeuticsTotal
Revenues:
Product revenue$30,220 $— $30,220 $29,465 $— $29,465 
Research and development revenue17,886 20,950 38,836 28,691 10,302 38,993 
Total revenues48,106 20,950 69,056 58,156 10,302 68,458 
Costs and operating expenses:
Cost of product revenue13,742 — 13,742 15,632 — 15,632 
Research and development (1)
20,923 21,705 42,628 19,380 13,278 32,658 
Selling, general and administrative(1)
9,597 2,355 11,952 8,462 2,222 10,684 
Total segment costs and operating expenses44,262 24,060 68,322 43,474 15,500 58,974 
Income (loss) from operations$3,844 $(3,110)734 $14,682 $(5,198)9,484 
Corporate costs (2)
(22,306)(19,624)
Depreciation and amortization(2,099)(1,778)
Loss before income taxes$(23,671)$(11,918)
(1) Research and development expenses and selling, general and administrative expenses exclude depreciation and amortization of finance leases.
(2) Corporate costs include unallocated selling, general and administrative expense, interest income, and other income and expenses.
Year Ended December 31, 2019Year Ended December 31, 2018
Performance EnzymesNovel BiotherapeuticsTotalPerformance EnzymesNovel BiotherapeuticsTotal
Revenues:
Product revenue$29,465 $— $29,465 $25,590 $— $25,590 
Research and development revenue28,691 10,302 38,993 21,483 13,521 35,004 
Total revenues58,156 10,302 68,458 47,073 13,521 60,594 
Costs and operating expenses:
Cost of product revenue15,632 — 15,632 12,620 — 12,620 
Research and development (1)
19,380 13,278 32,658 18,924 10,185 29,109 
Selling, general and administrative(1)
8,462 2,222 10,684 7,538 771 8,309 
Total segment costs and operating expenses43,474 15,500 58,974 39,082 10,956 50,038 
Income (loss) from operations$14,682 $(5,198)9,484 $7,991 $2,565 10,556 
Corporate costs (2)
(19,624)(20,324)
Depreciation(1,778)(1,147)
Loss before income taxes$(11,918)$(10,915)
(1) For the year ended December 31, 2019, research and development expenses and selling, general and administrative expenses exclude depreciation and amortization of finance leases. For the year ended December 31, 2018, research and development expenses and selling, general and administrative expenses exclude depreciation.
(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 (in thousands):
Years Ended December 31,
202020192018
Performance Enzymes$2,970 $2,303 $2,591 
Novel Biotherapeutics768 695 338 
Corporate cost3,990 3,945 4,960 
Total$7,728 $6,943 $7,889 
Significant Customers
Customers that each accounted for 10% or more of our total revenues were as follows:
Percentage of Total Revenues
For the Years Ended December 31,
 202020192018
Merck26 %28 %29 %
Nestlé Health Science11 %15 %22 %
Novartis*23 %*
Tate & Lyle**13 %
Takeda Pharmaceutical Co. Ltd. 19 %**
* Percentage was less than 10%
Customers that each accounted for 10% or more of accounts receivable balances as of the periods presented as follows:
 
Percentage of Accounts Receivables
As Of December 31,
 20202019
Merck & Co.32 %38 %
Nestlé Health Science13 %10 %
Novartis25 %*
* Percentage was less than 10%
Geographical Information
Geographic revenues are identified by the location of the customer and consist of the following (in thousands):
 Year Ended December 31, 2020
202020192018
Revenues
Americas$24,352 $13,039 $15,370 
EMEA19,257 37,133 22,361 
APAC25,447 18,286 22,863 
Total revenues$69,056 $68,458 $60,594 
Identifiable long-lived assets by location was as follows (in thousands):
 December 31,
 20202019
United States$31,176 $30,387 
Identifiable goodwill was as follows (in thousands):`
Year Ended December 31, 2020Year Ended December 31, 2019
Performance EnzymesNovel BiotherapeuticsTotalPerformance EnzymesNovel BiotherapeuticsTotal
Goodwill$2,463 $778 $3,241 $2,463 $778 $3,241