Revenue

3 Months Ended

Mar. 31, 2024

Revenue

Revenue

11.  Revenue

Grant revenue

There was grant revenue associated with National Institutes of Health of $8,000 during the three months ended March 31, 2024. No grant revenue was earned for the three months ended March 31, 2023.

Process development revenue

During the three months ended March 31, 2024 and 2023, the Company recognized $3.5 million and $0.7 million in process development revenue. All process development revenue was primarily derived from two customers who each represented over 10% of the total recognized revenue. These revenues were derived from the contract liability which was recorded in the prior period as deferred revenue.

The following table presents changes in contract liabilities for the three months ended March 31, 2024 and 2023:

	Contract liabilities
Balance at December 31, 2023	$	(2,389,441)
Changes to the beginning balance arising from:
Reclassification to revenue as the result of performance obligations satisfied		3,508,113
Net change to contract balance recognized since beginning of period due to amounts collected		(1,709,931)
Balance at March 31, 2024	$	(591,259)
	Contract liabilities
Balance at December 31, 2022	$	(1,618,308)
Changes to the beginning balance arising from:
Reclassification to revenue as the result of performance obligations satisfied		665,900
Net change to contract balance recognized since beginning of period due to amounts collected		(1,119,578)
Balance at March 31, 2023	$	(2,071,986)

The timing of revenue recognition, billings and cash collections results in billed accounts receivable and contract liabilities (customer deposits and deferred revenue). Contract liabilities represent customer deposits and deferred revenue billed and/or received in advance of the Company’s fulfillment of performance obligations. Contract liabilities convert to revenue as the Company performs its obligations under the contract.

The opening and closing balances of the Company’s accounts receivables are as follows:

Opening on January 1, 2023	$	81,456
Closing on December 31, 2023	$	375,192
Closing on March 31, 2024	$	535,028