Revenue and Deferred Revenue

12 Months Ended

Dec. 31, 2021

Revenue Recognition and Deferred Revenue [Abstract]

Revenue and Deferred Revenue

REVENUE AND DEFERRED REVENUE

Product revenue consists of instrument with embedded software essential to the instrument's functionality, consumables and platform evaluation agreements. Service revenue primarily consists of revenue received from the generation and analysis of proteomic data on behalf of the customer. Related party revenue is comprised of both the sale of products and services performed for PrognomIQ, as further discussed in Note 10. Grant revenues consist of services performed specifically for the reimbursement of research-related expenses.

Product Revenue

For the year ended December 31, 2021 and 2020, the Company recognized $3.6 million and $0 of product revenue to non-related customers. As of December 31, 2021 and 2020, the Company recorded $0.4 million and $0 of deferred revenue related to product sales.

Service Revenue

For the year ended December 31, 2021 and 2020 the Company recognized $0.5 million and $0 of service revenue to non-related customers. In March 2020, the Company entered into a sponsored research service agreement with a pharmaceutical company for a total consideration of $0.5 million of which $0.3 million was received and recorded as deferred revenue as of December 31, 2020. All of these deferred service revenues were recognized during the year ended December 31, 2021. As of December 31, 2021, there were $0 of deferred service revenue.

Deferred revenue activity for the year ended December 31, 2021 and 2020 are as follows (in thousands):

	December 31,
	2021		2020
Balance, beginning of period	$	250	$	—
Additions	376		250
Revenue recognized	(250)		—
Balance, end of period	$	376	$	250

Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenues in future periods. The Company expects to recognize substantially all of the remaining transaction price in the next 12 months.

In fiscal year 2021, 21% of our total revenue was generated outside of the United States, primarily from countries in Asia. In fiscal year 2020, no revenues were generated outside of the United States.

Grant and other revenue

In February 2019, the Company entered into a sponsored research agreement with a biotechnology company under which the Company was required to execute certain research and development activities. During the year ended December 31, 2021 and 2020, the Company recognized research revenue of $0 and $0.3 million, with respect to this research agreement.

In August 2019, the Company received a notice of a Small Business Innovation Research grant award from the National Institutes of Health, which will provide funding of approximately $1.1 million to the Company for its development of research applications. In June 2020, the Company received a notice that additional grant consideration of $0.9 million will be awarded. During the year ended December 31, 2021 and 2020, the Company recognized grant revenue of $0.2 million and $0.4 million with respect to the award.