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Segment Information
9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION
The Company has two operating segments which are reportable segments for financial statement reporting purposes: Algenist® and Intermediates/Ingredients & Other. The change in reportable segments for financial reporting purposes that occurred in the fourth quarter of 2014 has been retrospectively applied to the prior period disclosure below.
The following table shows gross margin for the Company's reportable segments for the three and nine months ended September 30, 2015 and 2014, reconciled to the Company’s total product revenue and cost of product revenue as shown in its condensed consolidated statements of operations (in thousands):
Three months ended September 30, 2015
Algenist®
 
Intermediates/
Ingredients & Other
 
Total
Product revenues
$
6,882

 
$
2,251

 
$
9,133

Cost of product revenues
2,159

 
2,411

 
4,570

Segment gross profit (loss)
$
4,723

 
$
(160
)
 
$
4,563

Nine months ended September 30, 2015
 
 
 
 
 
Product revenues
$
18,284

 
$
7,977

 
$
26,261

Cost of product revenues
5,826

 
7,775

 
13,601

Segment gross profit
$
12,458

 
$
202

 
$
12,660

 
 
 
 
 
 
Three months ended September 30, 2014
 
 
 
 
 
Product revenues
$
6,742

 
$
4,881

 
$
11,623

Cost of product revenues
2,067

 
4,531

 
6,598

Segment gross profit
$
4,675

 
$
350

 
$
5,025

Nine months ended September 30, 2014
 
 
 
 
 
Product revenues
$
17,642

 
$
10,351

 
$
27,993

Cost of product revenues
5,444

 
9,014

 
14,458

Segment gross profit
$
12,198

 
$
1,337

 
$
13,535


A reconciliation of total segment gross profit to operating loss is as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Gross profit
$
4,563

 
$
5,025

 
$
12,660

 
$
13,535

Research and development programs revenue
2,266

 
5,936

 
9,483

 
17,896

Research and development expense
(13,207
)
 
(20,571
)
 
(38,508
)
 
(63,470
)
Sales, general and administrative expense
(19,596
)
 
(25,883
)
 
(61,845
)
 
(68,127
)
Restructuring charges
21

 

 
(372
)
 

Loss from operations
$
(25,953
)
 
$
(35,493
)
 
$
(78,582
)
 
$
(100,166
)

The Company does not allocate its assets to its reportable segments.