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Collaborative Research and Development Agreements, Distribution Agreements, and Licenses
9 Months Ended
Sep. 30, 2016
Research and Development [Abstract]  
Collaborative Research and Development Agreements, Distribution Agreements, and Licenses
COLLABORATIVE RESEARCH AND DEVELOPMENT AGREEMENTS, DISTRIBUTION AGREEMENTS, AND LICENSES
The Company has entered into multiple joint research and development agreements with Unilever, which expanded its research and development efforts. In September 2013, the Company and Unilever entered into a commercial supply agreement for at least 10,000 MT of the Company’s algae oil. In May 2014, Unilever announced the initial introduction of the Company's sustainable algae oil into one of its biggest soap brands, Lux.
In March 2016, the Company entered into a multi-year global supply agreement with Unilever, which includes a broad portfolio of its algae oils for Unilever to purchase. Production of these oils will take place at the Solazyme Bunge JV facility in Brazil and pricing terms are based upon variable production cost plus a defined contribution margin. The agreement contains certain minimum and maximum sales volumes and is subject to other terms and conditions. Unilever is a strategic development partner and customer for the Company. The Company intends to continue managing the strategic relationship with Unilever and has assigned the rights and responsibilities to deliver against the current supply agreement to the Solazyme Bunge JV, and accordingly revenue related to the Unilever supply agreement was recognized by the Solazyme Bunge JV in the three and nine months ended September 30, 2016. The Company expects to formalize the assignment agreement with the Solazyme Bunge JV.