Collaboration and Licensing Revenue

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Historically, the Company has derived collaboration and licensing revenue through agreements with counterparties for the development and commercialization of products enabled by the Company's technology platforms. These collaborations and licensing agreements may provide for multiple promises to be satisfied by the Company and typically include a license to the Company's technology platforms, participation in collaboration committees, and performance of certain research and development services. Based on the nature of the promises in the Company's collaboration and licensing agreements, the Company typically combines most of its promises into a single performance obligation because the promises are highly interrelated and not individually distinct. Options to acquire additional services are considered to determine if they constitute material rights. At contract inception, the transaction price is typically the upfront payment received and is allocated to the performance obligations. The Company has determined the transaction price should be recognized as revenue based on its measure of progress under the agreement primarily based on inputs necessary to fulfill the performance obligation.

The Company recognizes the reimbursement payments received for research and development efforts in the period when the services are performed, in connection with the single performance obligation discussed above. The reimbursements relate specifically to the Company's efforts to provide services, and the reimbursements are consistent with what the Company would typically charge other collaborators for similar services. The Company assesses the uncertainty of when and if any milestones will be achieved to determine whether the milestone is included in the transaction price. The Company then assesses whether the revenue is constrained based on whether it is probable that a significant reversal of revenue would not occur when the uncertainty is resolved. Royalties, including sales-based milestones, received under the agreements will be recognized as revenue when sales have occurred because the Company applies the sales- or usage-based royalties recognition exception provided for under ASC Topic 606. The Company determined the application of this exception is appropriate because at the time the royalties are generated, the technology license granted in the agreement is the predominant item to which the royalties relate.

The Company determines whether collaborations and licensing agreements are individually significant for disclosure based on a number of factors, including total revenue recorded by the Company pursuant to collaboration and licensing agreements, collaborators or licensees with equity method investments, or other qualitative factors. Collaboration and licensing revenues generated from consolidated subsidiaries are eliminated in consolidation.

The following table summarizes the amounts recorded as revenue in the condensed consolidated statements of operations for each significant counterparty to a collaboration or licensing agreement for the three and nine months ended September 30, 2021 and 2020.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
ZIOPHARM Oncology, Inc.	$	—	$	—	$	—	$	100
Oragenics, Inc.	—		2,823		—		3,053


Castle Creek Biosciences, Inc.	18		2,394		371		16,967
Other	4		6		18		139
Total (1)	$	22	$	5,223	$	389	$	20,259

(1)Collaboration and licensing revenues include the recognition of $22 and $5,213 for the three months ended September 30, 2021 and 2020, respectively, and $380 and $19,654 for the nine months ended September 30, 2021 and 2020, respectively, associated with upfront and milestone payments which were previously deferred.

There have been no significant changes to the agreements with our collaborators and licensees in the nine months ended September 30, 2021.

Deferred Revenue

Deferred revenue primarily consists of consideration received for the Company's collaboration and licensing agreements. Deferred revenue consisted of the following:


	September 30, 2021		December 31, 2020
Collaboration and licensing agreements	$	23,040	$	23,420
Prepaid product and service revenues	3,493		2,126
Other	183		277
Total	$	26,716	$	25,823
Current portion of deferred revenue	$	3,693	$	2,800
Long-term portion of deferred revenue	23,023		23,023
Total	$	26,716	$	25,823

Revenue is recognized under collaboration and licensing agreements as services are performed. Certain of the arrangements are not active while the other party evaluates the status of the project and its desired future development activities. The following table summarizes the remaining balance of deferred revenue associated with upfront and milestone payments for each significant counterparty to a collaboration or licensing agreement as of September 30, 2021 and December 31, 2020, as well as the estimated remaining performance period as of September 30, 2021.


	Average Remaining Performance Period (Years)	September 30, 2021		December 31, 2020
Intrexon Energy Partners, LLC	2.5	$	8,362	$	8,362
Intrexon Energy Partners II, LLC	3.2	12,843		12,843
Castle Creek Biosciences, Inc.	0.3	17		379
Other	3.1	1,818		1,836
Total		$	23,040	$	23,420