Revenue

9 Months Ended

Sep. 30, 2024

Revenue

Revenue

11.  Revenue

CDMO revenue

During the three and nine months ended September 30, 2024, the Company recognized $0.8 million and $5.0 million in CDMO revenue with three customers representing 59% and 70% of the total recognized revenue for the respective periods. For the three and nine months ended September 30, 2023, the Company recognized $0.6 million and $2.0 million in CDMO revenue with two customers representing 72% and 79% of the total recognized revenue for the respective periods. 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 nine months ended September 30, 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		4,891,241
Net change to contract balance recognized since beginning of period due to amounts collected		(4,842,664)
Balance at September 30, 2024	$	(2,340,864)
	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		1,962,303
Net change to contract balance recognized since beginning of period due to amounts collected		(4,433,141)
Balance at September 30, 2023	$	(4,089,146)

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.

Grant revenue

There was grant revenue associated with National Institutes of Health of $0.1 million and $0.2 million during the three and nine months ended September 30, 2024. No grant revenue was earned for the nine months ended September 30, 2023.

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 September 30, 2024	$	203,077