Segment, Geographical and Other Revenue Information

9 Months Ended

Sep. 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 income (loss) before income taxes (in thousands):

	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Revenues:
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
Costs and operating expenses:
Cost of product revenue	9,786		—		9,786		6,867		—		6,867
Research and development(1)	6,782		13,855		20,637		5,670		8,850		14,520
Selling, general and administrative(1)	3,791		888		4,679		3,306		831		4,137
Total segment costs and operating expenses	20,359		14,743		35,102		15,843		9,681		25,524
Income (loss) from operations	$	10,787	$	(11,419)	(632)		$	16,741	$	(5,496)	11,245
Corporate costs (2)					(7,947)						(8,097)
Unallocated depreciation and amortization					(1,405)						(794)
Income (loss) before income taxes					$	(9,984)					$	2,354

	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
	Performance Enzymes		Novel Biotherapeutics		Total		Performance Enzymes		Novel Biotherapeutics		Total
Revenues:
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
Costs and operating expenses:
Cost of product revenue	29,577		—		29,577		15,403		—		15,403
Research and development(1)	19,833		37,279		57,112		17,172		20,649		37,821
Selling, general and administrative(1)	11,208		2,288		13,496		9,294		2,052		11,346
Total segment costs and operating expenses	60,618		39,567		100,185		41,869		22,701		64,570
Income (loss) from operations	$	40,156	$	(32,126)	8,030		$	26,528	$	(10,845)	15,683
Corporate costs (2)					(24,940)						(24,431)
Unallocated depreciation and amortization					(3,953)						(2,220)
Loss before income taxes					$	(20,863)					$	(10,968)

(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, net.

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

	Three Months Ended September 30,
	2022								2021
	Performance Enzymes		Novel Biotherapeutics		Corporate cost		Total		Performance Enzymes		Novel Biotherapeutics		Corporate cost		Total
Stock-based compensation	$	1,382	$	414	$	2,735	$	4,531	$	1,228	$	272	$	1,516	$	3,016

	Nine Months Ended September 30,
	2022								2021
	Performance Enzymes		Novel Biotherapeutics		Corporate cost		Total		Performance Enzymes		Novel Biotherapeutics		Corporate cost		Total
Stock-based compensation	$	4,151	$	1,182	$	6,267	$	11,600	$	3,337	$	767	$	4,443	$	8,547

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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Customer A	39	%	51	%	54	%	29	%
Customer B	*		*		*		12	%
Customer C	13	%	*		*		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
	September 30, 2022		December 31, 2021
Customer A	21	%	62	%
Customer B	16	%	*
Customer D	14	%	*

Geographical Information

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues
Americas	$	4,822	$	7,816	$	12,167	$	18,588
EMEA	5,987		4,685		14,805		17,135
APAC	23,661		24,268		81,243		44,530
Total revenues	$	34,470	$	36,769	$	108,215	$	80,253

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

	September 30, 2022		December 31, 2021
United States	$	63,812	$	65,457

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

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