Collaboration, Licensing and Other Arrangements (Tables)

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Revenue from Collaboration and Services

Revenue from collaborations and services for the three and nine months ended September 30, 2021 and 2020 are as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
UT License Agreement	$	12,313	$	7,978	$	33,475	$	23,934
Vertice Pharma Co-Promotion Agreement		—		—		1,147		—
Receptor CLA		31		63		206		188
Cipla License and Distribution Agreement		37		36		110		108
Other		77		—		161		—
UT Research Agreement		—		—		—		211
Total revenue from collaborations and services	$	12,458	$	8,077	$	35,099	$	24,441

Schedule of Revenue Allocation, Remaining Performance Obligation, Expected Timing of Satisfaction

Revenue was allocated as follows:

Distinct Performance Obligation	Transaction Price		Allocation of Price	Recognition Method	Progress Measure	Recognition Period
	(in millions)
R&D Services and License	$	105.8	100%	Over time	Ratably	Sep 2018 - Dec 2021	(1)

___________________

(1) Recognition period represents the estimated period to satisfy the performance obligation.

Description	Transaction Price		Allocation of Price(1)		Recognition Method	Progress Measure	Revenue Recognition
	(in millions)
Total transaction price	$	50.9
Distinct Performance Obligation
R&D Services and License			$	18.4	Over time	Ratably	May 2021 - Oct 2021	(2)
Pre-Commercial Services			$	4.6	Over time	Input	% of completion of costs	(3)
Next-Gen R&D Services			$	7.2	Over time	Input	% of completion of costs	(3)
Facility Expansion Services(4)			$	20.7	Point in time		Transfer of control	(5)

___________________

(1) Allocation is based on management’s assessment of the stand-alone selling price of each performance obligation.

(2) Represents the estimated period when the R&D Services performance obligation will be substantially complete.

(3) Pre-Commercial Services and Next-Gen R&D Services performance obligations will be satisfied over time using the input method based on the costs incurred to date as a percentage of the total estimated costs to fulfill the contract. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer.

(4) The Company will also be acting as agent for the procurement of equipment for the manufacturing expansion for the UT Equipment. The $5.3 million received from UT for the UT Equipment was recognized as deposits from customer on the condensed consolidated balance sheet and will be released as the title is transferred to UT.

(5) The Facility Expansion Services performance obligation would be recognized as control of manufactured products is transferred to the customer.

Schedule of Revised Anticipated Cash Flows from Transactions Allocated Performance Obligations

Description	Anticipated Cash Flow		Allocation(1)		Recognition Method	Progress Measure	Revenue Recognition
	(in millions)
Total anticipated cash flow	$	221.5
Distinct Performance Obligation
R&D Services and License(2)			$	6.0	Over time	Ratably	Aug 2021 - Oct 2021	(3)
Next-Gen R&D Services			$	8.8	Over time	Input	% of completion of costs	(4)
Manufacturing Services			$	206.7	Point in time		Transfer of control	(5)

___________________

(1) Allocation is based on management’s assessment of the stand-alone selling price of each performance obligation.

(2) The license for the Company’s IP was considered to be interdependent with the development activities to support approval of Tyvaso DPI. A sales-based royalty is promised in exchange for the IP license; therefore, the royalties associated with the license are excluded from the determination of the transaction price and the Company will recognize revenue as the sale of Tyvaso DPI to a patient occurs.

(3) Represents the estimated period when the R&D Services performance obligation will be substantially complete.

(4) The Next-Gen R&D Services performance obligation will be satisfied over time using the input method based on the costs incurred to date as a percentage of the total estimated costs to fulfill the contract. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer.

(5) The Manufacturing Services performance obligation will be recognized as control of manufactured products is transferred to the customer; therefore, no revenue associated with this obligation was recognized during the three or nine months ended September 30, 2021. The allocation of transaction price is based on the Company’s estimated production and the ultimate cash flows may vary as manufacturing purchase orders are received.