Note 7. Alliance Revenue

Alliance revenue for the six months ended June 30, 2018 and 2017 represents revenue from contracts with customers accounted for in accordance with ASC Topic 606, which the Company adopted in the first quarter of 2018, as more fully described in Note 2. There was no impact to Alliance revenue previously recognized by the Company as a result of the adoption of ASC Topic 606.

For the three and six months ended June 30, 2018 and 2017, Alliance revenue in the accompanying statements of operations and comprehensive loss is comprised of the following:


	Three months ended				Six months ended
	June 30,				June 30,
(In thousands)	2018		2017		2018		2017
GSK collaboration (1)	$	141	$	186	$	283	$	557
Vivelix collaboration (2)		—		—		56		—
Other (3)		22		1		79		8
Total Alliance revenue	$	163	$	187	$	418	$	565

(1)

For all periods presented, revenue recognized primarily relates to the amortization of the deferred up-front payment received at inception of the Company’s collaboration and license agreement with GSK Agreement, as more fully described in Note 8. Revenue recognized for the six months ended June 30, 2017 also includes an additional $0.1 million related to additional research services provided in connection with the collaboration and license agreement with GSK.

(2)

For the six months ended June 30, 2018, revenue recognized relates to services provided under the research program provided for under the Company’s exclusive license and collaboration agreement with Vivelix, as more fully described in Note 8.

Note 7. Alliance Revenue (Continued)

(3)

For all periods presented, revenue recognized relates to collaborations which are not material to the Company’s current operations nor expected to be material in the future, including reimbursements by licensees of costs associated with patent maintenance.

The following table presents changes in the Company’s contract assets and liabilities during the six months ended June 30, 2018 and 2017:


	Six months ended June 30, 2018
(In thousands)	Beginning		Additions		Deductions		Ending
Contract assets	$	—	$	—	$	—	$	—
Contract liabilities:
Deferred revenue	$	566	$	—	$	(331)	$	235


	Six months ended June 30, 2017
(In thousands)	Beginning		Additions		Deductions		Ending
Contract assets	$	—	$	—	$	—	$	—
Contract liabilities:
Deferred revenue	$	1,263	$	—	$	(465)	$	798

During each of the six months ended June 30, 2018 and 2017, the Company recognized Alliance revenues of $0.3 million and $0.5 million, respectively, as a result of changes in the contract liability balances associated with its contracts with customers. Revenue recognized during each of the six months ended June 30, 2018 and 2017 were included in the contract liability at the beginning of each respective period. As of June 30, 2018, contract liabilities consisted of deferred revenue related entirely to the Company’s collaboration and license agreement with GSK and were included in Deferred revenue in the accompanying condensed balance sheet.

See Note 8 for additional details regarding the Company’s collaboration arrangements.