Revenue Recognition

6 Months Ended

Jun. 30, 2022

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, 2022						Three Months Ended June 30, 2021
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	34,645	$	—	$	34,645	$	14,717	$	—	$	14,717
Research and development revenue	1,885		1,876		3,761		6,868		3,868		10,736
Total revenues	$	36,530	$	1,876	$	38,406	$	21,585	$	3,868	$	25,453
Primary geographical markets:
Americas	$	2,307	$	1,307	$	3,614	$	3,703	$	2,141	$	5,844
EMEA	4,121		569		4,690		4,442		1,727		6,169
APAC	30,102		—		30,102		13,440		—		13,440
Total revenues	$	36,530	$	1,876	$	38,406	$	21,585	$	3,868	$	25,453

	Six Months Ended June 30, 2022						Six Months Ended June 30, 2021
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	65,335	$	—	$	65,335	$	24,943	$	—	$	24,943
Research and development revenue	4,294		4,117		8,411		10,872		7,670		18,542
Total revenues	$	69,629	$	4,117	$	73,746	$	35,815	$	7,670	$	43,485
Primary geographical markets:
Americas	$	4,861	$	2,486	$	7,347	$	6,574	$	4,199	$	10,773
EMEA	7,186		1,631		8,817		8,979		3,471		12,450
APAC	57,582		—		57,582		20,262		—		20,262
Total revenues	$	69,629	$	4,117	$	73,746	$	35,815	$	7,670	$	43,485

Contract Balances

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

	June 30, 2022		December 31, 2021
Contract assets	$	11,287	$	4,557
Unbilled receivables	$	8,543	$	8,558
Contract costs	$	36	$	56
Contract liabilities: deferred revenue	$	5,381	$	6,335

We had no asset impairment charges related to financial assets in the three and six months ended June 30, 2022 and 2021.

The increase in contract assets was primarily due to increases 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 decrease in deferred revenue was primarily due to timing of recognition of revenue.

We recognized the following revenues (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Revenue recognized in the period for:	2022		2021		2022		2021
Amounts included in contract liabilities at the beginning of the period:
Performance obligations satisfied	$	441	$	1,239	$	1,413	$	1,391
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	(298)		4,306		(29)		4,336
Performance obligations satisfied from new activities in the period - contract revenue	38,263		19,908		72,362		37,758
Total revenues	$	38,406	$	25,453	$	73,746	$	43,485

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, 2022.

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 June 30, 2022 (in thousands):

	Remainder of 2022		2023		2024		2025 and Thereafter		Total
Product revenue	$	5	$	67	$	100	$	2,876	$	3,048
Research and development revenue	1,019		1,292		15		7		2,333
Total revenues	$	1,024	$	1,359	$	115	$	2,883	$	5,381