Collaboration and Licensing Revenue

The Company generates revenue through contractual agreements with collaborators (known as exclusive channel collaborations, "ECC" or "ECCs") and licensing agreements whereby the collaborators or the licensees obtain exclusive access to the Company's proprietary technologies for use in the research, development and commercialization of products and/or treatments in a contractually specified field of use. Upfront and milestone payments are typically deferred and recognized over the expected life of the Company's technology platform using a straight-line approach. The Company recognizes the reimbursement payments received for research and development services in the period in which the services are performed and collection is reasonably assured. The following tables summarize the amounts recorded as revenue in the consolidated statements of operations for each significant collaboration or licensing agreement for the three and six months ended June 30, 2016 and 2015.



	Three Months Ended June 30, 2016
	Revenue Recognized From				Total
	Upfront and Milestone Payments		Research and Development Services		Total
ZIOPHARM Oncology, Inc.	$	922	$	6,048	$	6,970
Oragenics, Inc.	261		246		507
Fibrocell Science, Inc.	605		789		1,394
Genopaver, LLC	68		1,569		1,637
S & I Ophthalmic, LLC	—		2,358		2,358
OvaXon, LLC	—		808		808
Intrexon Energy Partners, LLC	625		3,587		4,212
Persea Bio, LLC	125		206		331
Ares Trading S.A.	1,597		621		2,218
Thrive Agrobiotics, Inc.	46		404		450
Intrexon Energy Partners II, LLC	500		394		894
Exotech Bio, Inc.	139		—		139
Relieve Genetics, Inc.	120		230		350
Intrexon T1D Partners, LLC	278		32		310
Other	2,769		2,134		4,903
Total	$	8,055	$	19,426	$	27,481



	Three Months Ended June 30, 2015
	Revenue Recognized From				Total
	Upfront and Milestone Payments		Research and Development Services		Total
ZIOPHARM Oncology, Inc.	$	644	$	4,606	$	5,250
Oragenics, Inc.	307		68		375
Fibrocell Science, Inc.	448		1,470		1,918
Genopaver, LLC	68		867		935
S & I Ophthalmic, LLC	—		890		890
OvaXon, LLC	—		662		662
Intrexon Energy Partners, LLC	625		2,731		3,356
Persea Bio, LLC	125		141		266
Ares Trading S.A.	739		—		739
Other	747		2,043		2,790
Total	$	3,703	$	13,478	$	17,181



	Six Months Ended June 30, 2016
	Revenue Recognized From				Total
	Upfront and Milestone Payments		Research and Development Services		Total
ZIOPHARM Oncology, Inc.	$	1,844	$	12,107	$	13,951
Oragenics, Inc.	524		789		1,313
Fibrocell Science, Inc.	1,210		2,041		3,251
Genopaver, LLC	137		3,078		3,215
S & I Ophthalmic, LLC	—		3,544		3,544
OvaXon, LLC	—		1,502		1,502
Intrexon Energy Partners, LLC	1,250		6,950		8,200
Persea Bio, LLC	250		405		655
Ares Trading S.A.	3,194		1,429		4,623
Thrive Agrobiotics, Inc.	92		792		884
Intrexon Energy Partners II, LLC	1,000		444		1,444
Exotech Bio, Inc.	139		—		139
Relieve Genetics, Inc.	120		230		350
Intrexon T1D Partners, LLC	278		32		310
Other	3,789		4,384		8,173
Total	$	13,827	$	37,727	$	51,554



	Six Months Ended June 30, 2015
	Revenue Recognized From				Total
	Upfront and Milestone Payments		Research and Development Services		Total
ZIOPHARM Oncology, Inc.	$	1,288	$	7,763	$	9,051
Oragenics, Inc.	569		76		645
Fibrocell Science, Inc.	896		3,183		4,079
Genopaver, LLC	137		1,467		1,604
S & I Ophthalmic, LLC	—		1,645		1,645
OvaXon, LLC	—		1,306		1,306
Intrexon Energy Partners, LLC	1,250		4,916		6,166
Persea Bio, LLC	250		256		506
Ares Trading S.A.	739		—		739
Other	1,605		4,618		6,223
Total	$	6,734	$	25,230	$	31,964

Except for the agreements discussed below, there have been no significant changes to arrangements with our collaborators and licensees in the six months ended June 30, 2016. See Note 5 in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 for additional details of the Company's existing collaboration and licensing agreements.

Exotech Bio Collaboration

In March 2016, the Company entered into an ECC with Exotech Bio, Inc. ("Exotech Bio"), an affiliate of Harvest and a related party. Exotech Bio was formed for the purpose of entering into the ECC and developing and commercializing products using exosomes carrying a RNA payload designed to kill, suppress, or render immune-visible a cancer cell. Upon execution of the ECC, the Company received a technology access fee in the form of equity in Exotech Bio valued at $5,000 as upfront consideration. The Company is also entitled to up to $52,500 of potential payments for substantive and non-substantive development and commercial milestones for each product developed under the ECC. The Company receives reimbursement payments for research and development services provided pursuant to the ECC. Exotech Bio will pay the Company royalties as a percentage in the lower double-digits on the quarterly net sales of products developed under the ECC, as defined in the agreement. Exotech Bio is responsible for the development and commercialization of the product candidates. The term of the ECC commenced in March 2016 and continues until terminated pursuant to the ECC agreement. The ECC may be terminated by either party in the event of certain material breaches defined in the agreement and may be terminated voluntarily by Exotech Bio upon 90 days written notice to the Company.

Relieve Genetics Collaboration

In March 2016, the Company entered into an ECC with Relieve Genetics, Inc. ("Relieve Genetics"), an affiliate of Harvest and a related party. Relieve Genetics was formed for the purpose of entering into the ECC and developing and commercializing products using a viral vector expressing interleukin-10 for the treatment of chronic neuropathic pain resultant from cancer in humans. Upon execution of the ECC, the Company received a technology access fee in the form of equity in Relieve Genetics valued at $4,333 as upfront consideration. The Company is also entitled to up to $52,500 of potential payments for substantive and non-substantive development and commercial milestones for each product developed under the ECC. The Company receives reimbursement payments for research and development services provided pursuant to the ECC. Relieve Genetics will pay the Company royalties as a percentage in the lower double-digits on the quarterly net sales of products developed under the ECC, as defined in the agreement. Relieve Genetics is responsible for the development and commercialization of the product candidates. The term of the ECC commenced in March 2016 and continues until terminated pursuant to the ECC agreement. The ECC may be terminated by either party in the event of certain material breaches defined in the agreement and may be terminated voluntarily by Relieve Genetics upon 90 days written notice to the Company.

Intrexon T1D Partners Collaboration

In March 2016, the Company entered into an ECC with Intrexon T1D Partners, a related party. Pursuant to the ECC, Intrexon T1D Partners received an exclusive license to the Company's technology platform to develop and commercialize products to treat type 1 diabetes. Upon execution of the ECC, the Company received a technology access fee of $10,000 and is entitled to reimbursement of research and development services as provided for in the ECC agreement. The term of the ECC commenced in March 2016 and continues until March 2036; termination prior to that date may be initiated (i) by either party in the event of certain material breaches defined in the agreement or (ii) may be terminated Intrexon T1D Partners upon 90 days written notice to the Company.

AD Skincare Collaboration

In June 2016, the Company entered into an ECC with AD Skincare, Inc. ("AD Skincare"), an affiliate of Harvest and a related party. AD Skincare was formed for the purpose of entering into the ECC and developing an advanced topical delivery system to improve the efficacy of biologically active ingredients aimed at improving signs of aging human skin. Upon execution of the ECC, the Company received a technology access fee in the form of equity in AD Skincare valued at $4,333 as upfront consideration. The Company is also entitled to up to $2,000 of potential payments for substantive and non-substantive development milestones for each product developed under the ECC, as well as up to $17,000 in one-time commercial milestones. The Company receives reimbursement payments for research and development services provided pursuant to the ECC. AD Skincare will pay the Company royalties as a percentage in the low double-digits on the quarterly net sales of products developed under the ECC, as defined in the agreement. AD Skincare is responsible for the development and commercialization of the product candidates. The term of the ECC commenced in June 2016 and continues until terminated pursuant to the ECC agreement. The ECC may be terminated by either party in the event of certain material breaches defined in the agreement and may be terminated voluntarily by AD Skincare upon 90 days written notice to the Company.

ZIOPHARM Collaborations

In June 2016, the Company amended each of its two existing collaboration agreements with ZIOPHARM and as a result the rate of the royalty which the Company is entitled to receive on certain products commercialized pursuant to the agreements was reduced from 50% to 20%. As consideration for execution of the amendments, ZIOPHARM issued the Company 100,000 shares of ZIOPHARM's Series 1 Preferred Stock valued at $120,000. The Company allocated the consideration received to each ECC based on the cumulative value of upfront and milestone payments previously received pursuant to that ECC. Because the Company has remaining performance obligations under each of the ZIOPHARM ECCs, the Company recorded the initial fair value received as deferred revenue and will recognize this amount straight-line over the remaining performance period for each ZIOPHARM ECC. No other financially significant terms of the ZIOPHARM ECCs were changed as a result of the amendments. See Note 7 for additional discussion of the terms of the preferred stock and the accounting treatment.

Deferred Revenue

Deferred revenue primarily consists of consideration received for upfront and milestone payments in connection with the Company's collaborations and licensing agreements, prepayments for research and development services performed for collaborators and licensees, and prepayments for product and service revenues. Deferred revenue consists of the following:



	June 30, 2016		December 31, 2015
Upfront and milestone payments	$	310,937	$	181,331
Prepaid research and development services	8,122		10,938
Prepaid product and service revenues	5,471		4,759
Other	709		701
Total	$	325,239	$	197,729
Current portion of deferred revenue	$	53,863	$	35,366
Long-term portion of deferred revenue	271,376		162,363
Total	$	325,239	$	197,729

The following table summarizes the remaining balance of deferred revenue associated with upfront and milestone payments for each significant collaboration and licensing agreement:



	June 30, 2016		December 31, 2015
ZIOPHARM Oncology, Inc.	$	148,494	$	30,338
Oragenics, Inc.	8,289		8,813
Fibrocell Science, Inc.	20,235		21,445
Genopaver, LLC	2,113		2,250
Intrexon Energy Partners, LLC	19,375		20,625
Persea Bio, LLC	4,250		4,500
Ares Trading S.A.	50,373		53,567
Thrive Agrobiotics, Inc.	1,529		1,621
Intrexon Energy Partners II, LLC	16,833		17,833
Exotech Bio, Inc.	4,861		—
Relieve Genetics, Inc.	4,213		—
Intrexon T1D Partners, LLC	9,564		—
AD Skincare, Inc.	4,333		—
Other	16,475		20,339
Total	$	310,937	$	181,331