Revenue Recognition

9 Months Ended

Sep. 30, 2021

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, 2021						Three months ended September 30, 2020
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	28,731	$	—	$	28,731	$	8,401	$	—	$	8,401
Research and development revenue	3,853		4,185		8,038		4,604		5,380		9,984
Total revenues	$	32,584	$	4,185	$	36,769	$	13,005	$	5,380	$	18,385
Primary geographical markets:
Americas	$	5,999	$	1,817	$	7,816	$	3,209	$	2,632	$	5,841
EMEA	2,317		2,368		4,685		2,141		2,748		4,889
APAC	24,268		—		24,268		7,655		—		7,655
Total revenues	$	32,584	$	4,185	$	36,769	$	13,005	$	5,380	$	18,385

	Nine months ended September 30, 2021						Nine months ended September 30, 2020
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	53,674	$	—	$	53,674	$	18,005	$	—	$	18,005
Research and development revenue	14,723		11,856		26,579		13,380		16,638		30,018
Total revenues	$	68,397	$	11,856	$	80,253	$	31,385	$	16,638	$	48,023
Primary geographical markets:
Americas	$	12,573	$	6,015	$	18,588	$	7,381	$	10,591	$	17,972
EMEA	11,294		5,841		17,135		8,128		6,047		14,175
APAC	44,530		—		44,530		15,876		—		15,876
Total revenues	$	68,397	$	11,856	$	80,253	$	31,385	$	16,638	$	48,023

Contract Balances

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

	September 30, 2021		December 31, 2020
Contract assets	$	12,701	$	4,526
Unbilled receivables	$	10,760	$	10,942
Contract costs	$	70	$	90
Contract liabilities: deferred revenue	$	6,196	$	4,791

We had no asset impairment charges related to financial assets in the three and nine months ended September 30, 2021 and 2020.

The increase in contract assets was primarily due to increase in product revenue from contracts subject to over time

revenue recognition. The nominal decrease in unbilled receivables was primarily due to the timing of billings. The increase in deferred revenue was primarily due to cash advances received in excess of revenue recognized.

We recognized the following revenues (in thousands):

	Three months ended September 30,				Nine months ended September 30,
Revenue recognized in the period for:	2021		2020		2021		2020
Amounts included in contract liabilities at the beginning of the period:
Performance obligations satisfied	$	658	$	708	$	1,997	$	58
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	1,521		233		5,848		854
Performance obligations satisfied from new activities in the period - contract revenue	34,590		17,444		72,408		47,111
Total revenues	$	36,769	$	18,385	$	80,253	$	48,023

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, 2021.

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 as of September 30, 2021 (in thousands):

	Remainder of 2021		2022		2023		2024 and Thereafter		Total
Product revenue	$	5	$	67	$	67	$	2,700	$	2,839
Research and development revenue	1,106		1,705		546		—		3,357
Total revenues	$	1,111	$	1,772	$	613	$	2,700	$	6,196