Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Deferred Revenue, Noncurrent

The Company recognized deferred revenue, non-current as of September 30, 2022 and December 31, 2021 as follows:

(in thousands)	SEPTEMBER 30, 2022		DECEMBER 31, 2021
First Santen Agreement:
Upfront payment (1)	$	50,000	$	50,000
Developmental milestones (2)	6,000		—
Santen’s portion of shared costs (3)	6,881		6,315
Second Santen Agreement:
Upfront payment (4)	8,000		8,000
Total	$	70,881	$	64,315

(1)While the Company determined that the license was a right to use the Company’s intellectual property and as of the effective date of the First Santen Agreement, the Company had provided all necessary information to Santen to benefit from the license and the license term had begun, revenue was not recognized upon satisfaction of the performance obligation due to the uncertainty around potential termination in the event that patents are issued that may prevent the commercialization of the Licensed Products.

The Company will recognize the $50.0 million upfront payment received under the First Santen Agreement, and any other current and potential future development milestones and sales milestones, when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

(2)In March 2022, Santen made a $6.0 million developmental milestone payment in connection with the First Santen Agreement.

(3)This item represents Santen’s portion of shared costs related to conducting the first Rhopressa® Phase 3 clinical trial in Japan, which commenced in the fourth quarter of 2020, as described above.

(4)As of September 30, 2022 and December 31, 2021, the Company recognized $8.0 million of the Second Santen Agreement Upfront Payment as deferred revenue, non-current in its consolidated balance sheet due to the uncertainty around potential termination in China in the event that patents are issued that may prevent the commercialization of the Licensed Products.