Segment, Geographical and Other Revenue Information

6 Months Ended

Jun. 30, 2022

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. Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our business segments are primarily based on our organizational structure and our operating results as used by our CODM in assessing performance and allocating resources for the Company.

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. All of our long lived assets are located in the United States.

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 table provides financial information by our reportable business segments along with a reconciliation to consolidated loss before income taxes (in thousands):

	Three Months Ended June 30, 2022						Three Months Ended June 30, 2021
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Revenues:
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
Costs and operating expenses:
Cost of product revenue	11,270		—		11,270		4,318		—		4,318
Research and development(1)	6,929		11,078		18,007		5,057		7,194		12,251
Selling, general and administrative(1)	3,876		680		4,556		3,170		620		3,790
Total segment costs and operating expenses	22,075		11,758		33,833		12,545		7,814		20,359
Income (loss) from operations	$	14,455	$	(9,882)	4,573		$	9,040	$	(3,946)	5,094
Corporate costs (2)					(5,789)						(8,610)
Unallocated depreciation and amortization					(1,316)						(741)
Loss before income taxes					$	(2,532)					$	(4,257)

	Six Months Ended June 30, 2022						Six Months Ended June 30, 2021
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Revenues:
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
Costs and operating expenses:
Cost of product revenue	19,791		—		19,791		8,536		—		8,536
Research and development(1)	13,051		23,424		36,475		11,502		11,799		23,301
Selling, general and administrative(1)	7,416		1,400		8,816		5,988		1,221		7,209
Total segment costs and operating expenses	40,258		24,824		65,082		26,026		13,020		39,046
Income (loss) from operations	$	29,371	$	(20,707)	8,664		$	9,789	$	(5,350)	4,439
Corporate costs (2)					(16,994)						(16,335)
Unallocated depreciation and amortization					(2,549)						(1,426)
Loss before income taxes					$	(10,879)					$	(13,322)

(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 expenses, interest income, and other income (expense), net.

The following table provides stock-based compensation expense included in income (loss) from operations (in thousands):

	Three Months Ended June 30,
	2022								2021
	Performance Enzymes		Novel Biotherapeutics		Corporate cost		Total		Performance Enzymes		Novel Biotherapeutics		Corporate cost		Total
Stock-based compensation	$	1,283	$	358	$	1,590	$	3,231	$	1,115	$	257	$	1,472	$	2,844

	Six Months Ended June 30,
	2022								2021
	Performance Enzymes		Novel Biotherapeutics		Corporate cost		Total		Performance Enzymes		Novel Biotherapeutics		Corporate cost		Total
Stock-based compensation	$	2,770	$	768	$	3,531	$	7,069	$	2,109	$	495	$	2,927	$	5,531

Significant Customers

Customers that each accounted for 10% or more of our total revenues were as follows:

	Percentage of Total Revenues for the
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Customer A	62	%	15	%	62	%	10	%
Customer B	*		12	%	*		13	%
Customer C	*		12	%	*		*
Customer D	*		*		*		17	%
Customer E	*		*		*		10	%
* 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
	June 30, 2022		December 31, 2021
Customer A	67	%	62	%

Geographical Information

Geographic revenues are identified by the location of the customer and consist of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues
Americas	$	3,614	$	5,844	$	7,347	$	10,773
EMEA	4,690		6,169		8,817		12,450
APAC	30,102		13,440		57,582		20,262
Total revenues	$	38,406	$	25,453	$	73,746	$	43,485

Identifiable long-lived assets by location was as follows (in thousands):

	June 30, 2022		December 31, 2021
United States	$	65,400	$	65,457

Identifiable goodwill by reporting unit was as follows (in thousands):

	As of June 30, 2022 and December 31, 2021
	Performance Enzymes		Novel Biotherapeutics		Total
Goodwill	$	2,463	$	778	$	3,241