Revenue Recognition

9 Months Ended

Sep. 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 September 30, 2022						Three Months Ended September 30, 2021
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	28,042	$	—	$	28,042	$	28,731	$	—	$	28,731
Research and development revenue	3,104		3,324		6,428		3,853		4,185		8,038
Total revenues	$	31,146	$	3,324	$	34,470	$	32,584	$	4,185	$	36,769
Primary geographical markets:
Americas	$	3,654	$	1,168	$	4,822	$	5,999	$	1,817	$	7,816
EMEA	3,831		2,156		5,987		2,317		2,368		4,685
APAC	23,661		—		23,661		24,268		—		24,268
Total revenues	$	31,146	$	3,324	$	34,470	$	32,584	$	4,185	$	36,769

	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Major products and service:
Product revenue	$	93,376	$	—	$	93,376	$	53,674	$	—	$	53,674
Research and development revenue	7,398		7,441		14,839		14,723		11,856		26,579
Total revenues	$	100,774	$	7,441	$	108,215	$	68,397	$	11,856	$	80,253
Primary geographical markets:
Americas	$	8,514	$	3,653	$	12,167	$	12,573	$	6,015	$	18,588
EMEA	11,017		3,788		14,805		11,294		5,841		17,135
APAC	81,243		—		81,243		44,530		—		44,530
Total revenues	$	100,774	$	7,441	$	108,215	$	68,397	$	11,856	$	80,253

Contract Balances

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

	September 30, 2022		December 31, 2021
Contract assets	$	5,867	$	4,557
Unbilled receivables	$	7,490	$	8,558
Contract costs	$	28	$	56
Contract liabilities: deferred revenue	$	9,840	$	6,335

We had no asset impairment charges related to financial assets in the three and nine months ended September 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 decrease in unbilled receivables was primarily due to the timing of billings. The increase in deferred revenue was primarily due to the receipt of the $25.9 million fee from Pfizer in August 2022, pursuant to the terms of the Enzyme Supply Agreement (the “Pfizer Supply Agreement”) that was executed in July 2022, which was partially offset by the recognition of $19.4 million in contract assets relating to the same performance obligation within the same agreement.

We recognized the following revenues (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 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	$	889	$	658	$	1,694	$	1,997
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	495		1,521		365		5,848
Performance obligations satisfied from new activities in the period - contract revenue	33,086		34,590		106,156		72,408
Total revenues	$	34,470	$	36,769	$	108,215	$	80,253

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, 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 September 30, 2022 (in thousands):

	Remainder of 2022		2023		2024		2025 and Thereafter		Total
Product revenue	$	5	$	127	$	5,276	$	2,962	$	8,370
Research and development revenue	423		1,047		—		—		1,470
Total revenues	$	428	$	1,174	$	5,276	$	2,962	$	9,840