Revenue Recognition

12 Months Ended

Dec. 31, 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 for 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 for each of the fiscal years are as follows (in thousands):

	Year Ended December 31, 2021
	Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	70,657	$	—	$	70,657
Research and development revenue	19,858		14,239		34,097
Total revenues	$	90,515	$	14,239	$	104,754
Primary geographical markets:
Americas	$	16,114	$	7,367	$	23,481
EMEA	13,315		6,872		20,187
APAC	61,086		—		61,086
Total revenues	$	90,515	$	14,239	$	104,754

	Year Ended December 31, 2020
	Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	30,220	$	—	$	30,220
Research and development revenue	17,886		20,950		38,836
Total revenues	$	48,106	$	20,950	$	69,056
Primary geographical markets:
Americas	$	11,111	$	13,241	$	24,352
EMEA	11,548		7,709		19,257
APAC	25,447		—		25,447
Total revenues	$	48,106	$	20,950	$	69,056

	Year Ended December 31, 2019
	Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	29,465	$	—	$	29,465
Research and development revenue	28,691		10,302		38,993
Total revenues	$	58,156	$	10,302	$	68,458
Primary geographical markets:
Americas	$	13,039	$	—	$	13,039
EMEA	26,831		10,302		37,133
APAC	18,286		—		18,286
Total revenues	$	58,156	$	10,302	$	68,458

Contract Balances

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

	December 31, 2021		December 31, 2020
Contract assets	$	4,557	$	4,526
Unbilled receivables	$	8,558	$	10,942
Contract costs	$	56	$	90
Contract liabilities: deferred revenue	$	6,335	$	4,791

We recognize accounts receivable when we have an unconditional right to recognize revenue and have issued an invoice to the customer. Our payment terms are generally between 30 and 90 days. We recognize unbilled receivables when we have an unconditional right to recognize revenue and have not issued an invoice to our customer. Unbilled receivables are transferred to accounts receivable on issuance of an invoice. Unbilled receivables are classified separately on the consolidated balance sheets as assets. We maintain a valuation allowance on accounts receivables and unbilled receivables.

Contract assets represent our right to recognize revenue for custom products with no alternate use and under binding non-cancellable contracts and are largely related to our procurement of product. We recognize contract assets when we have a conditional right to recognize revenue. The transfer of control of certain of products occurs in advance of the invoicing process, which generates contract assets. In addition, we recognize a contract asset related to milestones not eligible for royalty accounting when we assess it is probable of being achieved and there will be no significant reversal of cumulative revenues. Contract assets are classified separately on the consolidated balance sheets as an asset and transferred to accounts receivables when our rights to payment become unconditional.

Contract liabilities, or deferred revenue, represent our obligation to transfer a product or service to the customer, and for which we have received consideration from the customer. We recognize a contract liability when we receive advance customer payments under development agreements for research and development services, upfront license payments, and from upfront customer payments received under product supply agreements. Contract liabilities are classified as a liability on the consolidated balance sheet.

Contract costs relate to incremental costs of obtaining a contract with a customer. Contract costs are amortized along with the associated revenue over the term of the contract.

During the years ended December 31, 2021, 2020 and 2019, we had no asset impairment charges related to contract assets.

We recognized the following revenues (in thousands):

	Year Ended December 31,
Revenue recognized in the period for:	2021		2020
Amounts included in contract liabilities at the beginning of the period:
Performance obligations satisfied	$	1,858	$	57
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	7,645		774
Performance obligations satisfied from new activities in the period - contract revenue	95,251		68,225
Total revenues	$	104,754	$	69,056

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 December 31, 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 (in thousands):

	2022		2023		2024		2025 and Thereafter		Total
Product revenue	$	89	$	87	$	120	$	2,985	$	3,281
Research and development revenue	2,497		557		—		—		3,054
Total revenues	$	2,586	$	644	$	120	$	2,985	$	6,335