Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions

Related Party Transactions

10. Related Party Transactions

In March 2013, the Company amended the agreement that it had entered into in March 2010 with a related party and that it and the related party had amended in March 2012. Under the amended agreement, the two companies agreed to work together to conduct research and development and other activities. The development program between the parties ended during the year ended December 31, 2014, although certain licensing and royalty elements continue. The other party and the Company each have an independent board member that serves on both companies’ boards of directors and the independent board member is also a managing member of a significant shareholder of the Company. As of December 31, 2015, this shareholder was a beneficial owner of approximately 9.3% of the Company’s common stock. As of December 31, 2015 and December 31, 2014 the Company had accounts receivable in the amount of zero and zero, respectively. The following table presents related party revenue included in the Consolidated Statement of Operations from this amended agreement (in thousands):

	Years Ended December 31,
	2015		2014		2013
Related party revenue	$	1,273	$	1,882	$	4,365

In November 2006, the Company entered into an Alliance Agreement with a related party that was a beneficial owner of less than 5.0% of the Company’s common stock. The other party and the Company each have an independent board member that serves on both companies’ boards of directors. Since November 2006, the agreement has been amended numerous times with the last amendment signed in December 2013. As of December 31, 2015 and December 31, 2014 the Company had accounts receivable in the amount of zero and zero, respectively, and had a deferred revenue balance in the amount of zero and $0.8 million, respectively, related to the amended agreement.

The following table presents related party revenue and cost of revenue included in the Consolidated Statement of Operations from the amended agreement (in thousands):

	Years Ended December 31,
	2015		2014		2013
Related party revenue	$	2,041	$	3,711	$	8,449
Related cost of revenue	$	—	$	—	$	4